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Item $1$

Exercise $3-6($Algo$)$ Preparing adjusting entries LO P$1,$ P$2,$ P$3$

Depreciation on the company's equipment for the year is computed to be $$14,000.$

The Prepaid Insurance account had a $$8,000$ debit balance at December $31$ before adjusting for the costs of any expired coverage. An analysis of the company$$s insurance policies showed that $$1,270$ of unexpired insurance coverage remains.

The Supplies account had a $$480$ debit balance at the beginning of the year, and $$2,680$ of supplies were purchased during the year. The December $31$ physical count showed $$566$ of supplies available.

One$-$fourth of the work related to $$11,000$ of cash received in advance was performed this period.

The Prepaid Rent account had a $$5,200$ debit balance at December $31$ before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $$3,930$ of prepaid rent had expired.

Wage expenses of $$4,000$ have been incurred but are not paid as of December $31.$

Prepare adjusting journal entries for the year ended December $31$ for each separate situation.