For each situation, reconstruct the adjusting entry that was made to arrive at the ending balance. Assume statements and adjusting entries are prepared only once each year.

1. Prepaid Insurance:

Balance beginning of year ......$5,600

Balance end of year .................. 6,400

During the year, an additional business insurance policy was purchased. A 2–year premium of $2,500 was paid and charged to Prepaid Insurance.

2. Accumulated Depreciation:

Balance beginning of year ......$85,200

Balance end of year ................... 88,700

During the year, a depreciable asset that cost $7,500 and had a carrying value of $1,600 was sold for $2,400.The disposal of the asset was recorded correctly.

3. Unearned Rent:

Balance beginning of year ......$11,000

Balance end of year ................... 15,000

Warehouse quarterly rent received in advance is $18,000. During the year, equipment was rented to another company at an annual rent of $9,000. The quarterly rent payments were credited to Rent Revenue; the annual equipment rental was credited to Unearned Rent.

4. Salaries Payable:

Balance beginning of year ......$42,860

Balance end of year ................... 34,760

Salaries are paid biweekly. All salary payments during the year were debited to Salaries Expense.