1.  Required: Make journal entries for the following two:

(a) On December 1, $18,000 was received for a service contract to be executed from December 1 to April 30.

(b) If the service work for this contract is performed evenly and regularly throughout this period, prepare the adjusting journal entry at the end of the year, December 31.

2. On December 31, the balance in the Office Supplies account is $1,385. A count shows $435 in supplies on hand. Prepare the supply adjustment entry.

3. The prepaid insurance account had a beginning balance of $6,600 and $2,300 of premiums paid during the year was debited. Record the required adjusting entry at the end of the year assuming that the amount of unexpired insurance relating to future periods is $4,100.

Answer rating: 100% (QA)

1 a December 1 Cash 18000 Unearned Revenue 18000 b December ... View the full answer