Directions: For each scenario below, determine the starting balance for the account in question, what the adjusting amount should be, and the ending balance. Then complete the adjusting entry necessary.

Scenario 1:

Prepaid insurance: The Prepaid Insurance account has a $5,000 debit balance to start the year. A review of insurance policies and payments shows that $1,000 of unexpired insurance remains at the end of the year.

1. The beginning balance of Prepaid Insurance:

2. The amount to be adjusted (show your calculation):

3. The ending balance of the account after the adjustment (show your calculation)

4. Adjusting Journal Entry (please include description):

Date	Account	Debit	Credit

Scenario 2:

Office Supplies: The Office Supplies account started the year with a $4,000 debit balance. During the year, the company purchased supplies for $13,400, which added to the Office Supplies Account. The inventory of supplies available at the end of the year totaled $2,554.

1. The beginning balance of Office Supplies:

2. The amount to be adjusted (show your calculation):

3. The ending balance of the account after the adjustment (show your calculation):

4. Adjusting Journal Entry (please include description):

Date	Account	Debit	Credit

Scenario 3:

Unearned Revenue: The company collected $24,000 rent in advance on September 1, debiting Cash and crediting Unearned Rent Revenue. The tenant was paying 12 months rent in advance and occupancy began September 1. Whenever you see the word "unearned, it always indicates a liability account. Most liability accounts include the word "payable, as those liabilities will be paid back. An unearned account is a liability that will be worked off, rather than paid off.

1. The beginning balance of Unearned Revenue:

2. The amount to be adjusted (show your calculation):

3. The ending balance of the account after the adjustment (show your calculation):

4. Adjusting Journal Entry (please include description):

Date	Account	Debit	Credit

Scenario 4:

Salaries: The company has 5 employees, who earn a total of $1,000 each working day. They are paid each Monday for their work in the five-day work week ending the previous Friday. Assume that December 31, is a Tuesday, and all 5 employees worked the first two days of the week. How much should be adjusted for on December 31?

1. The beginning balance of Salaries Payable:

2. The amount to be adjusted (show your calculation):

3. The ending balance of the account after the adjustment (show your calculation):

4. Adjusting Journal Entry (please include description): 0

Date	Account	Debit	Credit