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The following activity occurred in FY 20x7 for Geller Hospital: 1) The hospital paid a four year insurance premium in advance on January 1, 20x7.
The following activity occurred in FY 20x7 for Geller Hospital: 1) The hospital paid a four year insurance premium in advance on January 1, 20x7. 2) on March 1, 20x7 a year's rent was paid in advance. 3) A $160,000, 8 percent loan for twelve months was obtained from a bank on October 1, 20x7, and the interest was paid in advance by the hospital. On December 31, 20x7, the hospital's preadjusted trial balance included the following accounts, among others: $ 8,510 $ 14,250 Prepaid insurance Prepaid rent Prepaid interest Insurance Expense Rent Expense Interest Expense ? $ $ $ ? ? To be determined below To be determined below To be determined below Required: (1) Identify the preadjusted trial balance amount of Prepaid Interest (shaded in yellow above). (2) Prepare, in general journal form, the necessary adjusting entries at December 31, 20x7. Date Description Dr: Cr: 1) 2) 3)
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