Prepare the necessary adjusting journal entries on December 31 for each situation. (b) Prepare the 
necessary reversing journal entries on January 1 of the subsequent year. 
1..Company Q paid for a two-year insurance premium in advance on April 1 of the current year for $4,800 cash, which was debited to Insurance Expense.
2..Company R leased a warehouse on June 1 for the next twelve months by paying $4,800 cash in advance. The 
debit for the journal entry was to Lease Expense. 
3..Company S purchased a patent on January 1 of the current year for $6,300. The patent has an estimated useful life of 18 years and no residual value. 
4..Company T signed a promissory note on May 1 of the current year for a $30,000 loan. The loan carries a 10% 
interest rate. The note is payable on April 30 of next year for the face amount plus interest. 
5..Company U has an accounts receivable balance on December 31 of $8,000. The company estimates that 5% of receivables will not be collected. The allowance for doubtful accounts account currently has a $50 credit balance.
6..Company V has equipment to be depreciated for the full year. The cost of the equipment was $45,000 and the 
estimated useful life is five years with no salvage value. Company V's policy is to use the straight-line method.
7..Company W purchased office supplies of $400 during the year and debited Supplies Expense. A physical count of inventory showed $100 of supplies at the prior year-end and $150 at the current year-end. Company W's policy is to reverse adjusting entries at the beginning of each year as appropriate.
8..Company X sold subscriptions for a special service for $1,200 cash for twelve months beginning on September 1 of the current year. The total amount was credited to Subscriptions Revenue.
9..Company Y had employee salaries earned from December 29 through 31 of the current year that were not yet 
recorded of paid in the amount of $4,800. 
10..Company Z received a one-year note receivable from a customer dated November 1 of the current year for $6,000. The interest rate on the note is 10% and with both the principal and interest to be received at maturity.