E$4-8($Algo$)$ Recording Typical Adjusting Journal Entries $[$LO $4-1,$ LO $4-2,$ LO $4-6]$

Jaworski's Ski Store is completing the accounting process for its first year ended December $31,2021.$ The transactions during $2021$

have been journalized and posted. The following data are available to determine adjusting journal entries:

a$.$ The unadjusted balance in Supplies was $$870$ at December $31,2021.$ The unadjusted balance in Supplies Expense was $$0$ at

December $31,2021.$ A year$-$end count showed $$110$ of supplies on hand.

b$.$ Wages earned by employees during December $2021,$ unpaid and unrecorded at December $31,2021,$ amounted to $$3,900.$ The last

paychecks were issued December $28$; the next payments will be made on January $6,2022.$ The unadjusted balance in Salaries and

Wages Expense was $$42,000$ at December $31,2021.$

c$.$ A portion of the store's basement is now being rented for $$1,120$ per month to K$.$ Frey. On November $1,2021,$ the store collected six

months' rent in advance from Frey in the amount of $$6,720.$ It was credited in full to Deferred Revenue when collected. The

unadjusted balance in Rent Revenue was $$0$ at December $31,2021.$

d$.$ The store purchased delivery equipment at the beginning of the year. The estimated depreciation for $2021$ is $$2,200,$ although none

has been recorded yet.

e$.$ On December $31,2021,$ the unadjusted balance in Prepaid Insurance was $$3,120.$ This was the amount paid in the middle of the year

for a two$-$year insurance policy with coverage beginning on July $1,2021.$ The unadjusted balance in Insurance Expense was $$660,$

which was the cost of insurance from January $1$ to June $30,2021.$

f$.$ Jaworski's store did some ski repair work for Frey. At the end of December $31,2021,$ Frey had not paid for work completed

amounting to $$770.$ This amount has not yet been recorded as Service Revenue. Collection is expected during January $2022.$

Required:

For each situation, prepare the adjusting journal entry that Jaworski's should record at December $31,2021.($If no entry is required for

a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

$(1)2$

$3$

$4$

Record the adjusting entry for insurance.

Note: Enter debits before credits.