The following adjustments need to be made before the financial statements can be prepared at the end of the year. Task 1: Enter the necessary journal entries into the template provided and provide the journal entry for each.

December Interest on a bank loan is due on January 2nd of the following year: accrue $1,000. A contractor (outside services) has finished work on December 31st, but the invoice will not be received until January 7th of the following year: accrue $750. A rent payment was made on December 1st for three months from December 1st to February 28th of the following year (6,000 in total). Record the transaction properly.

The companys part-time employees worked a total of 50 hours in December, but will get paid only by January 5th. The hourly rate is $15. The company must record the payment of its annual insurance premium for next year. The annual premium is $1,200, an adjustment is necessary to prepaid insurance.

Task 2: Provide the adjusted trial balance (combine exercises 2.1 and 2.2 to show the adjusted trial balance).

Heres the template

Adjustment		Account and details	REF	Debit	Credit
1		Interest Expense
		Interest Payable
		To record December interest expense to be paid in January
2		Expense for Outside Services
		Accounts Payable
		To record liability towards contractor
3		Rental Expenses
		Prepaid Rent
		Cash
		To record the appropiate rental expense for the month
4		Wage Expense
		Wages Payable
		To record liability towards employees
5		Prepaid Insurance
		Cash
		To record insurance payment for the following year
		Total		$0	$0