Exercise 3-3 Preparing a. Depreciation on the company's equipment for the year is computed to be $12,000. b. The Prepaid Insurance account had a $9,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,160 of unexpired insurance coverage remains. c. The Office Supplies account had a $340 debit balance at the beginning of December, and $2,680 of office supplies were purchased in December. The December 31 physical count showed $401 of supplies available. d. Two-thirds of the work related to $12,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $5,800 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of rental policies showed that $4,640 of rental coverage had expired. f. Wage expenses of $6,000 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended (date of) December 31 for each of these separate situations. View transaction list Journal entry worksheet