A review of the accounts of Tucker and Wu Pan Accountants reflected the following transactions, which may or may not require adjustment for the year ended December 31, 2020.

1. The Prepaid Rent account shows a debit of $7,200 paid October 1, 2020, for a one-year lease that started on that day.

2. On November 1, 2020, Service Revenue was credited for $2,400 that was paid by a client for audit services to be performed in January.

3. On June 1, 2020, a cheque in the amount of $6,000 was issued for a two-year insurance policy starting on June 1, 2020. The amount was charged to Insurance Expense.

4. Interest of $1,270 has accrued on notes payable.

Instructions

Prepare (a) the adjusting entry for each item and (b) the reversing entry for each item, where appropriate.