The following (3) situations apply to Howard Electronics, Inc. for the year ended 12/31/23. INSTRUCTIONS - Make any adjusting entries required at 12/31/2023 for each situation. Financial Statements are prepared annually only. Provide an explanation for each entry showing all computations."

1. On September 1, 2023, Howard Electronics purchased a three-year fire and extended coverage insurance policy and charged the $5,400 premium to prepaid insurance.

2. The employees work Monday through Friday. The total gross wages for the bi-weekly pay period ended Friday, January 2, 2024 is $36,000.

3. On September 1, 2023, the company received an advance payment of $58,000 on a construction project. The total amount received was credited to the Construction Revenue account. At December 31, 2023 it was estimated that 60% of the job was completed.