The accountant for the Osgood Company is preparing to produce financial statements for December 31, Year One, and the year then ended. The accountant has uncovered several interesting figures within the companys trial balance at the end of the year:

Debit Credit

Interest expense 16000

interest payable 3000

Prepaid insurance 51000

Rent expense 56000

Revenues 411000

Supplies 14000

other information

1. The company collected $32,000 from a customer during the early part of November. The amount was recorded as revenue at that time although very little of the work has yet to be accomplished. 2. The company paid $36,000 for nine months of rent on a building on January 1, Year One, and then paid $20,000 on October 1, Year One, for five additional months. 3. A count of all supplies at the end of the year showed $2,000 on hand. 4. An interest payment was made at the end of December. Although no previous recognition had been made of this amount, the accountant debited interest payable. 5. On January 1, Year One, the company paid $24,000 for insurance coverage for the following six months. On July 1, Year One, the company paid another $27,000 for an additional nine months of coverage. 6. The company did work for a customer throughout December and finished on December 30. Because it was so late in the year, no journal entry was recorded, and no part of the $17,000 payment has been received. Required: A. Prepare any necessary entries as of December 31, Year One. B. Provide the appropriate account balances for each account impacted by these adjusting entries.