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Please explain how to Journalize the adjusting entries. An accountant made the following adjustments at December 31, the end of the accounting period: Prepaid insurance,
Please explain how to Journalize the adjusting entries.
An accountant made the following adjustments at December 31, the end of the accounting period:
- Prepaid insurance, beginning, $500. Payments for insurance during the period, $2,000. Prepaid insurance, ending, $400.
- Interest revenue accrued, $2,500.
- Unearned service revenue, beginning, $1,700. Unearned service revenue, ending, $300.
- Depreciation on building, $5,600.
- Employees' salaries owed for two days of a five-day work week; weekly payroll, $19,000.
- Income before income tax, $21,000. Income tax rate is 35%.
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