Journalize the adjusting entry needed at August 31, the fiscal year-end, for each of the following independent situations. No other adjusting entries have been made for the year.
a. On July 1, we collected $3,000 rent in advance. We debited Cash and credited Unearned Rent Revenue. The tenant was paying six months’ rent in advance.
b. The business holds a $35,000 note receivable. Interest revenue of $520 has been earned on the note but not yet received.
c. Salary expense is $2,900 per day, Monday through Friday, and the business pays employees each Friday. This year, August 31 falls on a Tuesday.
d. The unadjusted balance of the Supplies account is $1,400. Supplies on hand total $200.
e. Equipment was purchased last year at a cost of $8,000. The equipment’s useful life is 10 years.
f. On April 1, when we prepaid $1,560 for a one-year insurance policy, we debited Prepaid Insurance and credited Cash.