Ricardo Construction began operations on December 1. In setting up its accounting procedures, the com- Exercise 3-114 pany decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when Adjusting for prepaids customers pay for services in advance. Prepare journal entries for items a through d and the adjusting recorded as expenses entries as of its December 31 period-end for items e through g. and unearned revenues a. Supplies are purchased on December 1 for $2,000 cash. recorded as revenues b. The company prepaid its insurance premiums for $1,540 cash on December 2. P4 c. On December 15, the company receives an advance payment of $13,000 cash from a customer for remodeling work. d. On December 28, the company receives $3,700 cash from another customer for remodeling work to be performed in January 132 Chapter 3 Adjusting Accounts and Preparing Financial Statements Check in Cr Insurance Expense, $1,200, (O) DI Remodeling Fees Earned, $11,130 e. A physical count on December 31 indicates that the Company has $1,840 of supplies available. f. An analysis of the insurance policies in effect on December 31 shows that $340 of insurance coverage had expired. g. As of December 31, only one remodeling project has been worked on and completed. The $5,570 fee for this project had been received in advance and recorded as remodeling fees earned