Q) For each of the following independent situations and from the information below record the adjusting entry.

Record the Adjusting Journals:

1) When supplies are purchased by Rebecca they were recorded as an asset. Calculations after an end of period stock-take revealed a closing stock (balance) of $2,000. There was an opening balance of $3,000 and during the period $8,000 of supplies were purchased. Record the adjusting entry. (Alternative: record the adjusting entry assuming the supplies were recorded as an expense when purchased.)

2) Cherry pays her insurance of $24,000 annually in early September. The insurance policy covers all her claims from 12.01 a.m. on September 1. Insurance is recorded as an expense when paid and the financial year ends on December 31. Record Cherrys adjusting entry for the four months ended December 31. (Alternative: record the adjusting entry assuming the insurance was recorded as a prepayment (asset) when paid.) (Alternative: record the adjusting entry from the perspective of the insurance company assuming the insurance was recorded as a liability when received.) (Alternative: record the adjusting entry from the perspective of the insurance company assuming the insurance was recorded as revenue when received.)

3) Nelson Construction received $500,000 in August 2018 for a new building project and recorded this initial cash receipt as a liability. The project is 75% complete at financial year-end. Record the adjusting entry for financial year ending June 30, 2019 for Nelson. (Alternative: record the adjusting entry assuming the initial cash receipt was recorded as revenue when received.)

4) A tennis club offered a special rate for upfront annual memberships at the start of the season. If patrons paid their 12 months fees in advance they only had to pay $1,200. The tennis club recorded the fees received as Membership Revenue, and 300 people signed up. At the end of the financial year the tennis club had been operational for 3 months. Record the adjusting entry for the tennis club. (Alternative: record the adjusting entry assuming the initial cash receipt was recorded as a liability when received.)

5) Kristina owns a cruise ship and leased it for 8 years receiving $9.6 million (the entire lease amount) at the commencement of the lease. Kristina recorded the receipt of the money as Unearned Rent Revenue. Record the adjusting entry when his first financial year ends two months after the lease commenced. (Alternative: record the adjusting entry assuming the initial cash receipt was recorded as revenue when received.)

6) On 1 September 2015, Stephen Services purchased a new digital SLR camera for $18,500. The depreciation charge for the camera is $3,000 per year. Record the adjusting entry for depreciation for the financial year ending 30 June 2019. (Alternative: record the adjusting entry assuming the camera was purchased on 1 September 2018.) (Alternative: record the adjusting entry assuming the depreciation charge was $350 per month and the camera was purchased on 1 September 2015.) (Alternative: record the adjusting entry assuming the depreciation charge was $350 per month and the camera was purchased on 1 September 2018.)