Exercise each of these separate situations. recorded as liabilities. Prepare adjusting journal entries for the year ended (date of) December 31, 2011, for Assume that prepaid expenses are initially recorded that in asset accounts Also assume that fees collected in advance of work are initially Depreciation on the company's equipment for 2011 is computed to be $16,000. b. The Prepaid Insurance account had a $7,000 debit balance at December 31, 2011, before adjusting for the costs of any expired coverage. An analysis of the company's insuranoe polieies showed that $1,040 of unexpired insurance coverage remains c. The Office Supplies account had a $300 debit balance on December 31, 2010; and $2,680 of office supplies were purchased during the year. The December 31, 2011, d. One-half of the work related to $10,000 of cash received in advance was performed e. The Prepaid Insurance account had a $5,600 debit balance at December 31, 2011, physical count showed $354 of supplies available. this period before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $4,600 of coverage had expired. f Wage expenses of $4,000 have been incurred but are not paid as of December 31, 2011. CHAT