i More Info a. b. C. Each Friday, Lorring pays employees for the current week's work. The amount of the weekly payroll is $5,500 for a five-day workweek. This year December 31 falls on a Wednesday. Lorring will pay its employees on January 2. On January 1 of the current year, Lorring purchases an insurance policy that covers two years, $10,000. The beginning balance of Office Supplies was $4,100. During the year, Lorring purchased office supplies for $5,300, and at December 31 the office supplies on hand total $1,200. d. During December, Lorring designed a landscape plan and the client prepaid $7,000. Lorring recorded this amount as Unearned Revenue. The job will take several months to complete, and Lorring estimates that the company has earned 60% of the total revenue during the current year. At December 31, Lorring had earned $2,500 for landscape services completed for Brimmfield Appliances. Brimmfield has stated that it will pay Lorring on January 10. e. f. Depreciation for the current year includes Equipment, $3,900; and Trucks, $1,700. g. Lorring has incurred $700 of interest expense on a $1,000 interest payment due on January 15. Print Done