Exercise 3-1 Preparing adjusting entries LO P1, P2, P3 a. Depreciation on the company's equipment for the year is computed to be $11.000. b. The Prepaid Insurance account had a $8,000 debit balance at December 31 before adjusting for the costs of any explied coverage. An analysis of the company's Insurance policies showed that $900 of unexpired Insurance coverage remains c. The Office Supplies account had a $420 debit balance at the beginning of the year, and $2.680 of office supplies were purchased during the year. The December 31 physical count showed $496 of supplies available. d. One-fifth of the work related to $10,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $5,500 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $4,600 of prepaid rent had expired. f. Wage expenses of $3,000 have been incurred but are not paid as of December 31 Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate ce Answer is not complete. No Transaction Credit a General Journal Depreciation expense-Equipment Accumulated depreciation-Equipment Debit 11 000 11,000 b 7.100 Insurance expense Prepaid insurance 7,100 C Supplies expense Supplies O d Unearned revenue Revenue e Rent expense Prepaid rent f Wagos expense Wages payable Prey 1 of 8 Next >