question 1.

The following are selected unadjusted account balances as at December 31, the year end of Joseph's Law Firm:

Accounts receivable

$50,600

Prepaid insurance

12,600

Salaries payable

-0-

Service revenue

456,000

Insurance expense

8,200

Salaries expense

115,000

INFORMATION FOR ADJUSTING ENTRY Additional information obtained from a review of the law firm's records show that prepaid insurance includes $12,600 paid for a one-year policy that was effective December 1st.

Prepare the December 31 adjusting entry required for the item stated above.	Answer 1Choose...DR INSURANCE EXPENSE 2,100 CR PREPAID INSURANCE 2,100DR PREPAID INSURANCE 2,100 CR CASH 2,100DR INSURANCE EXPENSE 525 CR PREPAID INSURANCE 525DR PREPAID INSURANCE 1,050 CR ACCOUNTS PAYABLE 1,050DR INSURANCE EXPENSE 1,050 CR PREPAID INSURANCE 1,050DR PREPAID INSURANCE 1,050 CR INSURANCE EXPENSE 1,050CANNOT BE REVERSED
Prepare the reversing entry required for January 1.	Answer 2Choose...DR INSURANCE EXPENSE 2,100 CR PREPAID INSURANCE 2,100DR PREPAID INSURANCE 2,100 CR CASH 2,100DR INSURANCE EXPENSE 525 CR PREPAID INSURANCE 525DR PREPAID INSURANCE 1,050 CR ACCOUNTS PAYABLE 1,050DR INSURANCE EXPENSE 1,050 CR PREPAID INSURANCE 1,050DR PREPAID INSURANCE 1,050 CR INSURANCE EXPENSE 1,050CANNOT BE REVERSED

question 2.

The following are selected unadjusted account balances as at December 31, the year end of Joseph's Law Firm:

Accounts receivable

$50,600

Prepaid insurance

12,600

Salaries payable

-0-

Service revenue

456,000

Insurance expense

8,200

Salaries expense

115,000

INFORMATION FOR ADJUSTING ENTRY Additional information obtained from a review of the law firm's records show that work completed for clients in December and will be invoiced in January is $9,800.

Prepare the December 31 adjusting entry required for the item stated above.	Answer 1Choose...DR Accounts Receivable 9,800 CR Cash 9,800DR Revenues 9,800 CR Accounts Payable 9,800DR Revenues 9,800 CR Accounts Receivable 9,800DR Accounts Receivable 9,800 CR Revenues 9,800DR Cash 9,800 CR Revenues 9,800DR Revenue Expenses 9,800 CR Accounts Receivable 9,800
Prepare the reversing entries required for January 1, 2022.	Answer 2Choose...DR Accounts Receivable 9,800 CR Cash 9,800DR Revenues 9,800 CR Accounts Payable 9,800DR Revenues 9,800 CR Accounts Receivable 9,800DR Accounts Receivable 9,800 CR Revenues 9,800DR Cash 9,800 CR Revenues 9,800DR Revenue Expenses 9,800 CR Accounts Receivable 9,800