Question 1 (10 marks)

1. Before year-end adjustments are made, the December 31, 2019 trial balance of Ahmads Adventures contains revenue of $30,000 and expenses of $7,500. Adjustments are necessary for the following items:

1. Depreciation for the year is $2,000.
2. Revenue earned but not yet billed is $4,000.
3. Accrued interest expense is $1,000.
4. Revenue collected in advance that is now earned is $4,000.
5. Portion of prepaid insurance expired during the year is $2,750.

Required:

1. Record the above adjusting entries in 2019 Journal. [5 Marks]