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P4-2 Recording Adjusting Entries LO4-1 The following information applies to the questions displayed below All of the current year's entrles for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December 31 a. On September 1 of the curent year, Zimmerman collected six months' rent of $8,880 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,880 b. On October 1 of the current year, the company borrowed $13,200 from a local bank and signed a one-year, 13 percent note for that amount. The principal and interest are payable on the maturity date. c. Depreciation of $2,100 must be recognized on a service truck purchased in July of the current ycar at a cost of $21,000. d. Cash of $5,700 was collected on November of the current year, for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was recelved. e. On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $9,720, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount. f. The company earned service revenue of $3,000 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded. g. At December 31 of the current year, wages earned by employees totaled $13,700. The employees will be paid on the next payroll date in January of the next year h. On December 31 of the current year, the company estimated it owed $500 for this year's property taxes on land. The tax will be paid when the bill is received in January of next year. References