The following information is available to you in preparing the adjusting journal entries for Amadeus Company on September 30, 2021. Amadeus Company adjusts its books monthly.

1. On January 1 Amadeus purchased an annual insurance premium (the payment for insurance coverage is called a premium) of $21,600. The insurance covers Amadeus until December 31, 2021.
2. Amadeus originally purchased equipment costing $30,000 in 2019. The equipment had an estimated life of five years.