prepare adjusting entries

SYD HASAN CPA SYD HASAN CPA ACCT 330 CH 3 DEMO PROBLEM For each of the following independent situations that occurred in the current year, prepare all necessary adjusting entries at year-end 12/31. 1. Prepaid Insurance On 10/1, the company purchased a 2-year insurance policy and paid $24K. 2. Prepaid Rent On 8/1, the company paid $36K for 1-year rent of an office space 3. Supplies The supplies account had a balance of $3K at the beginning of the year. On 3/1, the company purchased $5K of supplies and paid cash. A physical count at the end of the year revealed that $2Kof supplies remained at year-end Supelies s3K 4. Unearned Revenues On 9/15, the firm received $50K from a customer for work to be performed. On 12/31, the project manager informed the CFO that $35K of work had been completed 5. Depreciation On 1/1 of the current year the firm bought a machine for $100K and paid cash for it. The machine has a residual value of $10K and a useful life of 5 years. The firm uses the Straight-Lime method of depreciation. Record the depreciation on the equipment for the current year on 12/31. De freuthar heen 6. Accrued Salaries The company follows a weekly patrol and employees are paid each Friday for the current week. The weekly payroll for the last week of the year was $40K. December 31, which is also the last day of the company's accounting period fell on a Tuesday. Assume that payroll expense for the week is uniformly distributed. oense 7. Accrued Interest The company borrowed $100K on a 1-year note on 10/1. The stated interest rate on the note is 12%. According to the terms of the note, both principal and interest is due at maturity 8. Accrued Revenues At the end of the year, the firm had $60K of work that had been performed but not billed to the client. vear, the ePA heveme