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Exercise 2-8 (Algo) Adjusting entries [LO2-6] The following transactions occurred during December 31, 2021, for the Falwell Company 1. A three-year fire insurance policy was

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Exercise 2-8 (Algo) Adjusting entries [LO2-6] The following transactions occurred during December 31, 2021, for the Falwell Company 1. A three-year fire insurance policy was purchased on July 1, 2021, for $10,800. The company debited insurance expense for the entire amount 2. Depreciation on equipment totaled $11,250 for the year. 3. Employee salaries of S14.500 for the month of December will be paid in early January 2022. 4. On November 1, 2021, the company borrowed $150,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2022 5. On December 1, 2021, the company received $4 800 in cash from another company that is renting office space in Falwell's building. The payment, representing rent for December January, and February was credited to deferred rent revenue. 6. On December 1, 2021, the company received $4,800 in cash from another company that is renting office space in Falwell's building The payment, representing rent for December, January, and February was credited to rent revenue rather than deferred rent revenue for $4,800 on December 1, 2021. Exercise 2-8 (Algo) Adjusting entries [LO2-6] The following transactions occurred during December 31, 2021, for the Falwell Company 1. A three-year fire insurance policy was purchased on July 1, 2021, for $10,800. The company debited insurance expense for the entire amount 2. Depreciation on equipment totaled $11,250 for the year. 3. Employee salaries of S14.500 for the month of December will be paid in early January 2022. 4. On November 1, 2021, the company borrowed $150,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2022 5. On December 1, 2021, the company received $4 800 in cash from another company that is renting office space in Falwell's building. The payment, representing rent for December January, and February was credited to deferred rent revenue. 6. On December 1, 2021, the company received $4,800 in cash from another company that is renting office space in Falwell's building The payment, representing rent for December, January, and February was credited to rent revenue rather than deferred rent revenue for $4,800 on December 1, 2021

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