Selected accounts of Ideal Properties, a real estate management firm, are shown below as of January 31, 2019, before any adjusting entries have been made.

Monthly financial statements are prepared. Using the following information, record the adjusting entries necessary on January 31 (a) using the financial statements effect template and (b) in journal entry form.

1. Prepaid Insurance represents a three-year premium paid on January 1, 2019.

2. Supplies of $850 were still available on January 31.

3. Office equipment-purchased on January 1, 2019-is expected to last eight years.

4. On January 1, 2019, Ideal Properties collected six months' rent in advance from a tenant renting space for $875 per month.

5. Accrued employee salaries of $490 have not been recorded as of January 31.

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Unadjusted Account Balances Debits Credits $6,660 Prepaid insurance. Supplies inventory Office equipment Unearned rent liability. Salaries expense. 1,930 ... 5,952 ... $ 5,250 3,100 Rent revenue 15,000