Journalize the adjusting entry needed at March 31, the fiscal year-end, for each of the following independent situations. No other adjusting entries have been made for the year.
a. On February 1, we collected $6,600 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 $5,000 note receivable. Interest revenue of $520 has been earned on the note but not yet received.
c. Salaries expense is $3,100 per day, Monday through Friday, and the business pays employees each Friday. This year, March 31 falls on a Thursday.
d. The unadjusted balance of the Supplies account is $1,000. Supplies on hand total $700.
e. Equipment was purchased two years ago at a cost of $4,000. The equipment’s useful life is five years.
f. On November 1, when we prepaid $936 for a one-year insurance policy, we debited Prepaid Insurance and credited Cash.