Adjusting Accounts Selected accounts of Ideal Properties, a real estate management firm, are shown below as of January 31, 2015, before any adjusting entries have been made. Debits Credits Prepaid insurance $13,320 Supplies inventory 3,860 Office equipment 11,904 Unearned rent revenue $10,500 Salaries expense 6,200 Rent revenue 30,000 Monthly financial statements are prepared. Using the following information, record the adjusting entries necessary on January 31 (a) using the financial statements effect template and (b) in journal entry form. 1. Prepaid Insurance represents a five-year premium paid on January 1, 2015. 2. Supplies of $1,700 were still available on January 31. 3. Office equipment-purchased on January 1, 2015 is expected to last eight years. 4. On January 1, 2015, Ideal Properties collected six months' rent in advance from a tenant renting space for $1,750 per month. 5. Accrued employee salaries of $980 have not been recorded as of January 31. Record the adjusting entry made on January 31, 2015 for each of the above transactions. Cash Noncash Contra Contrib. Earned Transaction Asset + Assets - Assets - Liabilities + Capital + Capital Revenues - Expenses = income 1. Prepaid insurance premium. 2. Supplies used during January. 3. Office equipment purchased on January 1. 4. Rent collected in advance on January 1. 5. Accrued salaries not recorded as of January 31. Net O O O O O Debit Credit General Journal Date Description Jan. 31 Insurance expense Prepaid insurance To record Transaction 1. adjusting entry. Jan. 31 Supplies expense Supplies inventory To record Transaction 2. adjusting entry. Jan. 31 Depreciation expense Accumulated depreciation . To record Transaction 3. adjusting entry. Jan. 31 Unearned rent revenue Rent revenue To record Transaction 4. adjusting entry. Jan. 31 Salaries expense Salaries payable To record Transaction 5. adjusting entry