Journalizing adjusting entries and subsequent journal entries Ingrid Legal Services has collected the following data for the December 31 adjusting entries:

a. Each Friday, Ingrid Legal Services pays employees for the current weeks work. The amount of the weekly payroll is $7,000 for a five-day workweek. This year, December 31 falls on a Wednesday. Ingrid Legal Services will pay its employees on January 2. b. On January 1 of the current year, Ingrid Legal Services purchases an insurance policy that covers two years, $9,000. c. The beginning balance of Supplies was $4,000. During the year, Ingrid Legal Services purchased supplies for $5,200, and at December 31 the supplies on hand total $2,400. d. During December, Ingrid Legal Services provided legal services, and the client prepaid $7,000. Ingrid Legal Services recorded this amount as Unearned Revenue. The job will take several months to complete, and Ingrid Legal Services estimates that the company has earned 40% of the total revenue during the current year. e. At December 31, Ingrid Legal Services had earned $3,500 for legal services completed for Quick Appliances. Quick Appliances has stated that it will pay Ingrid Legal Services on January 10. f. Depreciation for the current year includes Equipment, $3,700; and Furniture, $1,300. g. Ingrid Legal Services has incurred $300 of interest expense on a $450 interest payment due on January 15.

Requirements 1. Journalize the adjusting entry needed on December 31 for each of the previous items affecting Ingrid Legal Services. Assume Ingrid Legal Services records adjusting entries only at the end of the year.

2. Journalize the subsequent journal entries for adjusting entries a and g.