Refer to datum #2 from P3.4 on page 3-52. Suppose, instead, that the balance of Unearned Revenue were zero, and the Rent Revenue account has a 378,000 credit balance. In other words, the business credited Rent Revenue each time it received a rent payment. Prepare the adjusting journal entry under these revised facts.

Prepare the adjusting entries at December 31, 2020.

1. Insurance expense 4,840 P3.4 (LO 2, 3) A review of the ledger of Bellingham Accountants at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance 10,340. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on April 1, 2019, for 7,920. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2020, for 4,400. This policy has a term of 2 years. 2. Unearned Rent Revenue 378,000. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease. 2. Rent revenue 75,500 Number of Leases Date Term (in months) 9 6 Nov. 1 Dec. 1 Monthly Rent 5,000 8,500 5 3 3. Interest expense 1,200 3. Notes Payable 120,000. This balance consists of a note for 9 months at an annual interest rate of 6%, dated November 1. 4. Salaries and Wages Payable 0. There are eight salaried employees. Salaries are paid every Friday for the current week. Five employees receive a salary of 700 each per week, and three employees earn 500 each per week. Assume December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December. 4. Salaries and wages expense 2,000