Question 2: You are the bookkeeper of Steven company, on 31.1.2020 (the end of the first month) you have the following Balances extracted from the Trial balance (before adjustment): Account receivable $7,580 Prepaid insurance $8,160 Equipment $60,000 Supplies $18,500 Unearned revenues $7,890 Note payable $6,000 Accumulated depreciation $10,000

you have the following additional information and you are required to prepare the related adjusting entries for the month ended 31.1.2020:

A. Assume that the insurance policy was purchased on 1.1.2020 and insurance expires with annual rate of $2,040.

B. During the first month of 2020, the company used $12,500 of supplies.

C. The note was initiated on 1.1.2020 with an annual Interest rate of 12% and it matures in 4 months.

D. According to the production department, the company provided services total of $3,500 of the unearned revenues. E. At the end of 31.1.2020 accrued salaries not yet paid for the month of January are 12,000$