Journalize the adjusting entry needed at October 31, the fiscal year-end, for each of the following independent situations. No other adjusting entries have been made for the year.
a. On September 1, we collected $4,800 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 $30,000 note receivable. Interest revenue of $650 has been earned on the note but not yet received.
c. Salary expense is $1,700 per day, Monday through Friday, and the business pays employees each Friday. This year, October 31 falls on a Thursday.
d. The unadjusted balance of the Supplies account is $2,200. Supplies on hand total $700.
e. Equipment was purchased last year at a cost of $18,000. The equipment’s useful life is four years.
f. On June 1, when we prepaid $1,500 for a one-year insurance policy, we debited Prepaid Insurance and credited Cash.