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Prepaid insurance $15,200. The company has separate insurance policies on its buildings and motor vehicle. Policy A on the building was purchased on July 1
Prepaid insurance $15,200. The company has separate insurance policies on its buildings and motor vehicle. Policy A on the building was purchased on July 1 2011, for $9,600. The policy has a term of 3 years. Policy B on the vehicles was purchased on January 1 2012, for $7,200. This policy has a term of 18 months. Unearned Sales Revenue $22,800: The company began selling magazine subscription on October 1 2012, on an annual basis. The selling price of a subscription is $24. A review of subscription contracts reveals: Subscription Start Date # of Subscriptions Oct 1 250 Nov 1 300 Dec 1 400 Total 900 Notes payable $40,000: This balance consists of a note for 6 months at an annual rate of 7% dated October 1. Salaries payable $0: There are eight salaried employees. Salaries are paid every Friday for the current week. Five employees receive a salary of $600 per week, and three employees earn $700 per week. Assume December 31 is a Wednesday. Employees do not work weekends. All employees worked the last 3 days on December. Prepare the adjusting entries at December 31 2012
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