Cutler's Variet\ Store is completing the accounting process for the year just ended. December 31.

2003. The transactions during 2003 have been journalized and posted. The following data with respect to adjusting entries are available:

(/. Office supplies on hand at January 1. 2003. was $250. Office supplies purchased and debited to Office Supplies during the year amounted to S600. The > ear-end count showed $300 of supplies on hand.

b. Wages earned by employees during December 2003, unpaid and unrecorded at December 3 1 2003. amounted to S2.700. The last payroll was December 28; the next payroll will be January 6. 2004.

c. Three-fourths of the basement of the store is rented for S 1 , 1 00 per month to another merchant.

M. Dittman. Dittman sells compatible, but not competitive, merchandise. On November 1.

2003. the store collected six months* rent in the amount of S6.600 in advance from Dittman; it was credited in full to Unearned Rent Revenue when collected.

d. The remaining basement space is rented to Kathy*s Specialty Shop for $520 per month, payable monthly. On December 31. 2003, the rent for November and December 2003 had not been collected or recorded. Collection is expected January 10, 2004.

e. The store used delivery equipment that cost S30.000 and S6.000 was the estimated depreciation for 2003.

/ On July 1. 2003. a two-year insurance premium amounting to $3,000 was paid in cash and debited in full to Prepaid Insurance. Coverage began on July 1. 2003.

g. Cutter's operates a repair shop to meet its own needs. The shop also does repairs for M.

Dittman. At the end of December 3 1 . 2003, Dittman had not paid for $750 in completed alterations. This amount has not yet been recorded as Repair Shop Revenue. Collection is expected during January 2004.

Required: 1. Identity each transaction as a deferred revenue, deferred expense, accrued revenue, or accrued expense. 2. Using the process illustrated in the chapter, for each situation record the adjusting entry that should be recorded for Cutter*s at December 31. 2003.