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REQUIRED: Answer the questions below related to each of the above items. (All calculations should be clearly labeled and presented.) 1) Prepare the appropriate adjusting

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REQUIRED: Answer the questions below related to each of the above items. (All calculations should be clearly labeled and presented.) 1) Prepare the appropriate adjusting entry at 12/31/x5. 2) a) Determine the unadjusted balance in the prepaid insurance account at 12/31/x5. b) Prepare the appropriate adjusting entry at 12/31/x5. c) Determine the insurance expense for the year ended 12/31/x7. 3) a) Determine the amount of the salvage value assumed for the heating equipment. b) Determine the gain or loss on the sale of the equipment if the equipment sold for $22,500 on 10/1/x9. 4) Determine the balance in the accounts payable account at 1/1/x5. 5) a) Prepare the appropriate adjusting entry at 12/31/x5. b) If the company policy was to prepare reversing entries, would this adjusting entry be reversed? 6) a) Prepare the appropriate adjusting entry at 12/31/x5. b) If the company policy was to prepare reversing entries, would this adjusting entry be reversed? c) Determine the balance in Rent Revenue as of 12/31/x5. 1) A note receivable exists, as follows: Dated: 12/1/x5 Principal: $6,000 Term of note: 4 months Stated interest rate: 5% 2) A prepaid insurance account consists of two policies. The amounts indicated represent the full premium paid for the entire term of the policy. Policy A: 3 year policy; dated: 3/1/x4 Total premium paid: $ Policy B: 2 year policy dated: 8/1/x5 Total premium paid: $ 8,100 4,320 3) The company purchased new heating equipment, applying the straight-line method of depreciation: Initial purchase price: $ 80,000 Date of acquisition: 7/1/X3 Estimated useful life: Unadjusted balance in accumulated depreciation account at 12/31/x5: $ 9,000 12 years 4) Accounts payable are owed to suppliers of cleaning materials for the building. Materials expense for the year: $ 23,000 The 1/1/x5 balance in accounts payable: ? The 12/31/x5 balance in accounts payable: $ 1,750 Cash paid during the year for supplies: $ 24,500 5) Two notes payable exist at year-end. For notes with terms exceeding one year, interest is payable annually, on the anniversary date of the note (e.g., the interest for the first year for note payable A is due on 4/1/x5, etc.) For notes with terms less than one year, full interest is paid when the note is due. BI h 5) Two notes payable exist at year-end. For notes with terms exceeding one year, interest is payable annually, on the anniversary date of the note (e.g., the interest for the first year for note payable A is due on 4/1/x5, etc. For notes with terms less than one year, full interest is paid when the note is due. Note payable A-dated: 4/1/x4 Principal: $ 18,000 Term of note: 3 years Stated interest rate: 4% Note Payable B-dated: Principal: Term of note: Stated interest rate: 9/1/x5 $ 30,000 9 months 5% Pag I WALALARIENCE 6) Rent collected during the year is credited to the Rent Revenue account. The total collected during the year 20x5: $ 490,000 It was determined that three tenants had paid rent in advance, as follows: Tenant A: Total amount paid: $ 42,000 Term 5 months Date paid: 10/1/x5 Tenant B: Total amount paid: Term Date paid: $ 54,000 3 months 11/1/x5 Tenant C: Total amount paid: Term Date paid $ 38,000 4 months 12/1/x5

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