PROBLEM #1 Prepare adjusting journal entries for the year ended (or date of) December 31, 2005, for each of these separate situations. a. Depreciation on the company's equipment for 2005 is computed to be $16,000 b. The Prepaid Insurance account had a $7,000 debit balance at December 31, 2005, before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $680 of unexpired insurance coverage remains. c. The Office Supplies account had a $415 debit balance on December 31, 2004; and $2,680 of office supplies was purchased during the year. The December 31, 2005, physical count showed $489 of supplies available. d. One-fifth of the work related to $10,000 cash received in advance was performed this period e. The Prepaid Insurance account had a $5,600 debit balance at December 31, 2005, before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $4,920 of coverage had expired. f. Wage expenses of $4,000 have been incurred but are not paid as of December 31 2005. PROBLEM #2 Frisco Management has nine part-time employees, each of whom earns $220 per day. They are normally paid on Fridays for work completed Monday through Friday of the same week. They were paid in full on Friday, December 28, 2005. The next week, the nine employees worked only four days because New Years Day was an unpaid holiday. Show (a) the adjusting entry that would be recorded on Monday, December 31, 2005, and (b) the jounal entry that would be made to record payment of the employees wages on Friday, January 4, 2006 PROBLEM #3 Susan White has her own business as a performer at children's birthday parties. She can dress up and perform as a clown, or she can perform as a magician. Kids love her. Her business is set up as a sole proprietorship with a fiscal year end of June 30. Below are account balances as of June 30, 2003., in ALPHABETICAL order. REQUIRED: a) Please prepare CLOSING journal entries for year end AND b) Prepare a post-closing Trial Balance as of June 30, 2003. Balance at year end 1,750 425 1,657 2,700 8,500 4,500 2,950 550 6,319 23,500 18,335 7,950 770 890 550 252 665 485 Cash Supplies Equipment Automobile Accumulated Depreciation Unearned revenue Capital- Susan white Withdrawals Susan White Magician revenue Clown revenue Miscellaneous revenue Advertising Expense Depreciation Expense (Auto) Supplies Expense Miscellaneous expense Wardrobe expense