s Adjusting Journal entries 1. Prepaid Insurance in account of insurance balance is only $2000 Le. insurance of $3000 is utilised/being utilise til 31st december. Insurance Expense A/c Dr $3,000 To Prepaid Inserance $3.000 2. Debit balance of supplier's account in this case debit balance of $ 200 expired le cash received or we purchase product from supplier worth of $200 Cash/Bank/Purchase A/c Dr $200 To Supplies A/c $200 3. Rent received in advance In this case rent receive $8,400. Whole amount is not transfer to unexpired rent account because it is receive on 1st day of december and rent for the month of december is expire til 31st of december. 6400-1400) 4. Rent is not received for 2 months Rent A/c Dr. $2,400 To Tanent A/c $2,400 5. Payment to employee Employees A/c Dr. $8.400 To Cash/Bank (5200 226-57,000 To Outstading Exp. 51,400 6. Depreciation Depreciation A/c Dr. $5,000 To Asset A/c $5.000 Profit & Loss A/c Dr $5,000 To Depreciation $5,000 fo G 0