Exercise 3-6 Preparing adjusting entries P1 P2 P3 Prepare adjusting journal entries for the year ended December 31 for each separate situation. Entries can draw from the following partial chart of accounts: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Prepaid Rent; Equipment; Accumulated Depreciation-Equipment; Wages Payable; Unearned Revenue; Services Revenue; Wages Expense; Supplies Expense; Insurance Expense; Rent Expense; and Depreciation Expense Equipment. a. Depreciation on the company's equipment for the year is computed to be $18,000. b. The Prepaid Insurance account had a $6,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains. c. The Supplies account had a $700 debit balance at the beginning of the year, and $3,480 of supplies were purchased during the year. The December 31 physical count showed $300 of supplies available. d. Two-thirds of the work related to $15,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $6,800 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $5,800 of prepaid rent had expired. Check (c) Dr. Supplies Expense, $3,880 (e) Dr. Rent Expense, $5,800 f. Wage expenses of $3,200 have been incurred but are not paid as of December 31.