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E3-20 Determining the amount of prepaid expenses Consider the facts presented in the following table for Tropical View Situation $1,400 $1,000 200 700 Beginning Prepaid

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E3-20 Determining the amount of prepaid expenses Consider the facts presented in the following table for Tropical View Situation $1,400 $1,000 200 700 Beginning Prepaid Rent Payments for Prepaid Rent during the year700b Total amount to account for Subtract: Ending Prepaid Rent Rent Expense 1,800 2,100 1,600 S a900 $1,900 $1,000 Complete the table by filling in the missing values. P3-33A Journalizing adjusting entries and subsequent journal entries Laughter Landscaping has collected the following data for the December 31 adjusting entries: a. Each Friday, Laughter pays employees for the current week's work. The amount of the weekly payroll is $8,000 for a five-day workweek. This year, December 31 falls on a Tuesday. Laughter will pay its employees on January 3 b. On January 1 of the current year, Laughter purchases an insurance policy that covers two years, $8,000 c. The beginning balance of Office Supplies was $4,300. During the year, Laughter purchased office supplies for $5,600, and at December 31 the office supplies on hand total $1,500 d. During December, Laughter designed a landscape plan and the client prepaid $6,500. Laughter recorded this amount as Unearned Revenue. The job will take several months to complete, and Laughter estimates that the company has earned 40% of the total revenue during the current year e. At December 31, Laughter had earned $3,000 for landscape services completed for Turnkey Appliances. Turnkey has stated that it will pay Laughter on January 10 f. Depreciation for the current year includes Equipment, $3,000; and Trucks, $2,200. g. Laughter has incurred $250 of interest expense on a S550 interest payment due on January 15 Requirements 1. Journalize the adjusting entry needed on December 31 for each of the previous items affecting Laughter Landscaping. Assume Laughter records adjusting entries only at the end of the year 2. Journalize the subsequent journal entries for adjusting entries a, d, and g

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