E3-35B. (Learning Objective 3: Journalizing adjusting entries) Felipe Motor Company faced the following situations. Journalize the adjusting entry needed at December 31, 20X7, for each situation. Consider each fact separately.

1 The business has an interest expense of 9,000 that it must pay early in January 20X8.

2 Interest revenue of 4,800 has been earned but not yet received.

3 On July 1, 13,200 rent in advance was collected; Cash was debited and Unearned Rent

4 Revenue was credited. The tenant was paying two years rent.

5 Salary expense is 1,800 per dayMonday through Fridayand the business pays

employees each Friday. This year, December 31 falls on a Wednesday.

6 The unadjusted balance of the Supplies account is 3,300. The total cost of supplies on

hand is 1,200.

7 Equipment was purchased at the beginning of this year at a cost of 150,000. The equip-

ments useful life is five years. There is no residual value. Record depreciation for this year and then determine the equipments carrying amount.