Prepare December 31 (fiscal year-end) entries for each of the following (unrelated) items. Assume that no monthly adjusting entries have been made. All adjustments are made at year-end

Problem 3 Adjusting Journal Entries Prepare December 31 (fiscal year-end) entries for each of the following (unrelated) items. Assume that no monthly adjusting entries have been made. All adjustments are made at year-end. T-accounts may help! a. The company had a beginning balance of $2,400 in supplies on hand. During the year, $6,800 of supplies were purchased and recorded as supplies on hand (also known as supplies inventory). At the end of the year, supplies on hand were $3,400 (according to a physical count). b. The company paid rent of $360,000 for 2 years on September 1 of this year. c. The company received rent of $180,000 for 3 years on March 1 of this year. d. Before adjustment, the company shows accumulated depreciation of $32,000 on its equipment. The accountant determines that the amount of depreciation for the current year is $7,600. e. The company signed a $70,000, 9% note payable on May 1. The note and interest are due January 31. f. The company pays employees each Friday. December 31 fell on a Tuesday, so the company has incurred salaries of $2,800 that have not yet been recorded. g. On December 31, the company entered into a $90,000 agreement to provide services to a new customer, with the services to start next year on January 5. h. (This one is different think about it!) The company had a beginning balance of $1,400 in supplies on hand. During the year, $8,700 of supplies were purchased and recorded as supplies expense (because they thought the supplies would all be used up by year-end). At the end of the year, a physical count determined that supplies on hand were $2,800. 1) Compute the amount of supplies actually used 2) What is the correct ending balance of supplies on hand (inventory)? 3) Prepare the adjusting journal entry needed to arrive at the correct ending balances in supplies expense and supplies on hand