A review of the unadjusted balances for Lewis Company at December 31, 2022, produces these data pertaining to the preparation of annual adjustments. 1. 2. Date Nov. 1 3. Your answer is partially correct. Dec. 1 4. Prepaid Insurance $15,200. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on July 1, 2021, for $9.600. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2022, for $7,200. This policy has a term of 18 months. Unearned Rent Revenue $429,000. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease. Term (in months) 9 6 Monthly Rent $5,000 $8,500 Number of Leases 4 Notes Payable $40,000. This balance consists of a note for 6 months at an annual interest rate of 7%, dated October 1. Salaries and Wages Payable $0. There are 8 salaried employees. Salaries are paid every Friday for the current week. 5 employees receive a salary of $600 each per week, and 3 employees earn $700 each per week. Assume December 31 is a Wednesday. Employees do not work weekends. All employees worked the last 3 days of December. Record adjustments at December 31, 2022, for items 1 through 4 by completing the following tabular summary with selected unadjusted balances. Include an explanation for each adjustment Record adjustments at December 31, 2022, for items 1 through 4 by completing the following tabular summary with selected unadjusted balances. Include an explanation for each adjustment to revenue or expense. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Prepaid Insurance = Unadj. Bal. Adj. 1 Adj. 2 Assets Adj. 3 Adj. 4 15,200 Unearn. Rent Rev. Assets 429,000 Prepaid Insurance 15.200 -8000 Liabilities + Notes Pay. + 40.000 Sal./Wag. Pay. Unearn. Rent Rev. 0 + Int. pay 429,000 i -84000 i 0 + Stockholders' Equity Retained Earnings Com. Stock + Rev. + Rev. Exp. - Div Notes Pay. Liabilities 40.000 i i + Sal./Wag. Pay. -5100 0 + Int. pay i -700 0 Question 56 of 58 0.01 / 0.01 to revenue or expense. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) + Assets Prepaid Insurance 15.200 Sal./Wag. Pay. i -5100 Unearn. Rent Rev. 429,000 0 Liabilities + Notes Pay. + 40,000 Int. pay -700 Sal./Wag. Pay. 0 + Int. pay Com. Stock + Stockholders' Equity Retained Earnings Com. Stock + Rev. Exp. Div Rev. Stockholders' Equity Retained Earnings Exp. Di Question 56 of 58 y Assets Prepaid Insurance = -700 0 15.200 eTextbook and Media Unearn. Rent Rev. 429,000 Com. Stock + i Liabilities Notes Pay. + 40,000 Sal./Wag. Pay. Rev. 0 0 Stockholders' Equity Com. + Int. pay + Stock + Rev. Exp. Stockholders' Equity Retained Earnings Retained Earnings Exp. Div Div 0.01 / 0.01 Insurance Expense Interest Expense Rent Revenue Salaries & Wages Expense