Problem 12.2A (Algo) Recording adjustments for accrued and prepaid expense items and unearned income. LO 12-2, 12-3 On July 1, 20x1, Tim Stein established his own Financial Services Selected transactions for the first few days of July follow DATE TRANSACTIONS 20x1 July 1 signed a lease for an office and issued Check 101 for $13,050 to pay the rent in advance for six months. 1 Borrowed money from Second National Bank by issuing a four month, 6 percent note for $36,000 received $35,289 because the bank deducted the interest in advance 1 signed an agreement with Carter Corp. to provide financial services for one year at $5,900 per month received the entire fee of 570.100 in advance. The $70,00 was credited to Unearned Financial Service Fees 1 Purchased office equipment for $17,000 from Office Outfitters, issued a two-month, 12 percent note in patient. The equipnent is estimated to have a useful life of six years and a $1,160 salvage value. The equipment will be depreciated using the straight-line wethod. 1 Purchased a one-year insurance policy and issued Check 102 for $1,620 to pay the entire preniom. 3 Purchased office furniture for $16,100 from Furniture Warehouse, Issued check 103 for $8,400 and agreed to pay the balance In days. The equipent has an estimated useful life of five years and $1,600 selvage value. The office furniture will be depreciated using the straight line nethod 5 Purchased office supplies for $1,510 with Check 104. Assume $600 of supplies are on hand July 31, 20x1. Required: 1. Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and uneared income as a liability for the year 20X1 2. Record the adjusting journal entries that must be made on July 31, 20X1. Analyze What balance should be reflected in Unearned Financial Service Fees at July 31, 20X1? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analy Racord the transactions in the general journal. Assume that the firm initially record prepaid expenses as assets and unearned Income as liability for the year 20X1 income as a liability for the year 20X1 2. Record the adjusting journal entries that must be made on July 31, 20X1. Analyze What balance should be reflected in Unearned Financial Service Fees at July 31, 20X1? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze Record the transactions in the general Journal. Assume that the firm initially records prepaid expenses as assets and uneamed Income as a liability for the year 20X1. View transaction list Journal entry worksheet 2 3 4 5 6 7 Record the purchase of furniture Note Enter debits before credits Dato Jul 03, 20x1 Guneral Journal Dobit Credit Record entry Clear entry View general journal