You have been given an unadjusted Trial Balance at the end of

Alico Inc. FY $(12/31/$XX$)$: In reviewing the unadjusted Trial Balance,

the following information has come to your attention:

a$.$ Alico Inc. entered into a six$-$month contract on $11/1/$XX to provide

maintenance service for six apartment houses owned by a Real

Estate Investment Trust. The total value the contract was $$185,000$

and required a $$20,000$ prepayment. On $11/1/$XX the bookkeeper

debited cash and credited Maintenance Revenue for the $$20,000$

prepayment. On $12/31/$XX $20\%$ of the contracted services had been

completed.

b$.$ On $8/1/$XX a one year fire insurance policy was purchased for

$$36,000.$ The bookkeeper debited Prepaid Insurance Expense and

credited Cash to record the transaction. No other journal entries

had been made for this transaction.

c$.$ Wages in the amount of $$95,000$ had been earned by Alico Inc.$\text{'}$

employees but will not be paid until next year. No entry had been

made to record this fact.

d$.$ On $11/1/$XX Alico Inc. lent $$50,000$ to one of its clients and the

client signed a $90$ day note receivable on this date with interest and

principal due and payable on January $31$ of the next year. The

interest rate was at $14\%$ per year. At the end of the current year

Alico Inc. had earned $$1,167$ in interest on the note. This amount

had not yet been recorded.

e$.$ Depreciation in the amount of $$15,000$ had not yet been recorded.

Required: Make the required adjusting entries on $12/31/$XX from the

information given above. As a journal description, indicate what

accounting principle that would have been violated if the adjusting entry

had not been made. Use the journal paper on the next page to make your

journal entries.