Prepare the necessary adjusting entries at December 31, 2011, for

Prepare the necessary adjusting entries at December 31, 2011, for the Falwell Company for each of the following situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.
1. A three-year fire insurance policy was purchased on July 1, 2011, for $12,000. The company debited insurance expense for the entire amount.
2. Depreciation on equipment totaled $15,000 for the year.
3. The company determined that accounts receivable in the amount of $6,500 will probably not be collected. The allowance for uncollectible accounts account has a credit balance of $2,000 before any adjustment.
4. Employee salaries of $18,000 for the month of December will be paid in early January 2012.
5. On November 1, 2011, the company borrowed $200,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2012.
6. On December 1, 2011, the company received $3,000 in cash from another company that is renting office space in Falwell's building. The payment, representing rent for December and January, was credited to unearned rent revenue.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...


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