Under the accrual basis of accounting, adjusting journal Entries are often made for which situations/Accounts? On July 1 Plum Co. paid $7, 500 cash for management services to be performed over a twelve month period. The Journal entry made at July 1 was: A debit to a prepaid expense and a credit to Cash for $7, 500. What is the adjusting entry that plum must make on July 31? Prepare that Journal entry. On September 1, Plug Corporation received 2400 cash for 6-months of rent in advance. Plug recorded the transaction as a debit to cash and a credit to unearned Rent Revenue for $2, 400. What is the Adjusting entry that plug must make at September 30? Prepare that Journal entry. Holman Company owns equipment with an original cost of $85,000 and an estimated salvage value $1,000. The equipment has a useful life of 6-years. The depreciation expense associated with the and tear of this asset as it is used in the business was calculated as $6,000 per year using the straight depreciation method. Prepare the adjusting entry needed to record annual depreciation