Chapter 3 Adjusing Accounts for Finencial Statements 133 Ricardo Construction began operations on December I. In setting up is accounting procedures, the com eredit revenue accounts when Exercise 3-11 pany decided to debit expense accounts when it prepays its expenses and lo customers pay for services in advance. Prepare journal entries for items a through d and the adjusting en recorded as expenses and tries as of its December 31 perio chan of accounls: Cash: Accounts Receivable: Interest Receivable: Supplies; Prepaid Insurance; Unearned recorded as revenues Adjusting for prepaids d-end for items e through g. (Entries can draw from the following partial unearned revenues s; Remodeling Fees Earned: Supplies Expense; Insurance Expense: Interest Expense) P4 a. Supplies are purchased on December 1 for $2,000 cash. b. The company prepaid its insurance premiums for $1.540 cash on December 2 c. On December 15, the compan y receives an advance payment of $13,000 cash from a customer for re modeling work d. On December 28, the company receives $3,700 cash from another customer for remodeling work to he e. A physical count on December 31 indicates that the Company has $1.840 of supplies available t. An analysis of the insurance policies in effect on December 31 shows that $340 of insurance coverage Check n g. As of December 31. only one remodeling project has been worked on and completed. The $5.570 fee performed in January rswande had expired. for this project had been received in advance and recorded as remodeling sees earned Fees Eaned, $13,130 200 Y