Question: The trial balance of Gleimer Sdn Bhd reported the following balances for selected accounts on July 31, 2014:

Prepaid Insurance $24,000 Unearned Service Revenue $ 9,600

Equipment 120,000 Notes Payable 60,000

Accumulated Depreciation 18,000 Interest Payable 1,400

Instructions:Using the additional information given below, prepare the appropriatemonthlyadjusting entries at July 31. Show computations.

1. Revenue for services rendered to customers, but not yet billed, totaled $16,000 on July 31.

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2. The note payable is a 7%, 1 year note issued March 1, 2014.

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3. The equipment was purchased on January 1, 2014, for $120,000. It has an estimated life of 5 years and an estimated salvage value of $24,000. Gleimer uses the straight-line depreciation method.

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4. An insurance policy was acquired on June 30, 2014; the premium paid for 2 years was $11,520.

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5. Gleimer received $9,600 fees in advance from a customer on January 1, 2014. Two-thirds of this amount was earned in July.

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