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Dunder Mifflin Company is preparing their annual financial statements. Below is a partial list of accounts and balances in the December 31 trial balance before
Dunder Mifflin Company is preparing their annual financial statements. Below is a partial list of accounts and balances in the December 31 trial balance before any adjustments have been made for the year 2009. Dunder Mifflin Company Trial Balance December 31, 2009 Debit Credit Office Supplies $ 2,700 Prepaid Insurance 6,000 Equipment 16,200 Accumulated Depreciation-Equipment $ 0 Unearned Rent Revenue 1,200 Note Payable 10,000 (Note: Debit column does not equal credit column because this is a partial listing of account balances.) An analysis of the account balances by the companys accountant provided the following additional information: 1. A physical count of office supplies revealed $1,200 on hand on December 31. 2. The two-year insurance policy was purchased on June 1, 2009 for $6,000. 3. Office equipment is depreciated at $5,400. 4. The amount of rent received in advance that remains unearned at December 31 is $500. 5. Service provided but not yet billed totaled $5,000. 6. Annual interest rate on note payable is 6%. The note of $10,000 was outstanding the full year and interest will not be paid until 2010. Instructions: Using the above information, prepare the six adjusting entries that should be made by Dunder Mifflin on December 31. Make sure you include the date, debit account, credit account, amount, and an explanation for the transaction. Not really sure how to do this, help would be appreciated
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