Question: Consider each of the following independent cases and prepare the

Consider each of the following independent cases and prepare the adjusting journal entry at year- end.
1. On June 30, 2014, Able Ltd. paid $ 18,000 for a two- year insurance policy. Insurance coverage started on July 1, 2014. The company’s bookkeeper debited insurance expense and credited cash, $ 18,000. Able’s fiscal year ends on January 31, 205.
2. On August 1, 2014, Landlord Inc. received $ 6,400 from a tenant representing payment of rent in advance for eight months (including August). Landlord’s bookkeeper debited cash and credited rent expense for $ 6,400. Landlord’s fiscal year ends on December 31, 2014.
3. The accountant for Jung Corp. computed the income tax expense for the year 2014 to be $ 12,200. Before recording the journal entry, she noticed that the unadjusted trial balance at December 31, 2014 (the company’s fiscal year- end), included prepaid income taxes of $ 3,400 and a zero balance for income tax expense.
4. On June 1, 2015, the supplies inventory account for Katz Ltd. showed a debit balance of $ 4,400. During June 2015, miscellaneous supplies totalling $ 1,800 were purchased on account and recorded as follows:
A physical count of supplies available at June 30, 2015, showed that $ 2,600 of supplies were still on hand. Katz’s fiscal year ends on June 30, 2015.

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