PROBLEM 5.12 Adjustments entries Forbes Ltd's annual accounting year ends on 30 June. It is 30 June 2019 and all of the 2019 entries except the following adjusting entries have been made. a On 1 April 2019 the company borrowed $80 000 from a local bank at 5 per cent per annum interest. The principal and interest are payable on 30 June 2020. The borrowing was correctly recorded but no adjustment has been made for interest. b On 1 March 2019 Forbes collected six months' rent of 518 000. At that date Forbes debited Cash and credited Uneamed rent revenue for $18 000 con 1 October 2018 Forbes paid a one-year premium for fire insurance, 518 000, for coverage starting on that date. Cash was credited and Prepaid insurance was debited for this amount d At 30 June 2019 wages earned by employees totalled $43 000. The employees will be paid in July 2019. On 30 June 2019 the company estimated it owed $7000 for 2019 electricity costs. The amount will be paid when the invoice is received in July 2019. f Office supplies on hand at 30 June 2018 totalled $1000. Additional office supplies casting $2400 were purchased and debited to Office supplies (asset account). The count of supplies on hand at year-end was $800 Required: 1 Using the following headings, indicate the effect of each adjusting entry and the amount of the effect. Use + for increase, - for decrease and NE for no effect. Assets Liabilities Revenues Expenses d 2 Prepare the adjusting joumal entries