Preparing Adjusting Entries, Trial Balances, Financial Statements, and Closing Entries

The unadjusted trial balance for Brown Inc. follows.

Brown Inc. Unadjusted Trial Balance December 31, 2020
Description	Debit	Credit
Cash	6,320	0
Accounts receivable	6,000
Prepaid lease expense	19,200
Supplies	11,000
Equipment	20,000
Accumulated depreciationequipment		3,000
Accounts payable		2,000
Note payable		8,000
Common stock		20,000
Retained earnings		8,000
Dividends	10,000
Service revenue		50,000
Interest expense	480
Salaries expense	13,000
Utility expense	2,000
Miscellaneous expense	3,000	0
Total	$91,000	$91,000

Additional information for accounting adjustments 1. Brown was required to pay the entire rental for a one-year lease beginning July 1 for $13,200 cash. Brown recorded the payment as a debit to Prepaid Lease Expense. 2. A year-end count revealed $2,000 of supplies still available. 3. Annual depreciation expense on the equipment is $1,000. 4. Unpaid and unrecorded salaries is $2,000 at year-end. 5. The note payable calls for annual interest of 8%, payable each September 30. The principal amount of the note is not due for several years.

a. Record the required adjusting journal entries.

General Journal
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