Journalize the adjusting entry needed on December 31, the end of the current accounting period, for each of the following indepen¬dent cases affecting Tiger Corp. Include an explanation for each entry,

a. Details of Prepaid Insurance are shown in the account:

Tiger prepays insurance on March 31 each year. At December 31, $1,800 is still prepaid.
b. Tiger pays employees each Friday. The amount of the weekly payroll is $5,900 for a five-day work week. The current accounting period ends on Thursday.
c. Tiger has a note receivable. During the current year, Tiger has earned accrued interest revenue of $500 that it will collect next year.
d. The beginning balance of supplies was $3,100. During the year, Tiger purchased supplies costing $6,100, and at December 31 supplies on hand total $2,300.
e. Tiger is providing services for Dolphin Investments, and the owner of Dolphin paid Tiger $11,500 as the annual service fee. Tiger recorded this amount as Unearned Service Revenue. Tiger estimates that it has earned 70% of the total fee during the current year.
f. Depreciation for the current year includes Office Furniture, $3,800, and Equipment, $6,100. Make a compound entry.

Transcribed Image Text:

Prepaid Insurance Jan 1 Ba 2,900 Mar 31 4,000