1. On December 31, 20X1, the Notes Payable account at Northwood Manufacturing Company had a balance of $8,500. This balance represented a three-month, 10 percent note issued on November 1.
2. On January 2, 20X1, Hitech Computer Consultants purchased flash drives, paper, and other supplies for $6,560 in cash. On December 31, 20X1, an inventory of supplies showed that items costing $1,720 were on hand. The Supplies account has a balance of $6,560
3. On October 1, 20X1, North Dakota Manufacturing paid a premium of $14,760 in cash for a one-year insurance policy. On December 31, 20X1, the Prepaid Insurance account has a balance of $14,760.
4. On June 1, 20X1, Headcase Beauty Salon signed a one-year advertising contract with a local radio station and issued a check for $11,640 to pay the total amount owed. On December 31, 20X1, the Prepaid Advertising account has a balance of $11,640.

For each of the above independent situations, prepare the adjusting entries that must be made on the December 31, 20X1, worksheet assuming no previous adjusting entries have been made during the year. (Round your answers to 2 decimal places.)

Journal entry worksheet

• Record an adjusting entry for interest.

Note: Enter debits before credits.

1

Date	General Journal	Debit	Credit
Dec 31, 20X1