1. Center Company is completing the accounting cycle at the end of the annual accounting period,...

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1. Center Company is completing the accounting cycle at the end of the annual accounting period, December 31, 2011. No adjusting entries have been made during the year so three adjusting entries must be made at this date to update the accounts. The following accounts, selected from Center Company's chart of accounts, are to be used for this purpose. They are coded to the left for easy reference. A. Supplies expense I. Unearned rent B. Supplies J. Rent expense C. Interest receivable K. Wage expense D. Equipment L. Depreciation expense E. Accumulated depreciation M. Interest expense F. Notes payable N. Interest revenue G. Interest payable O. Rent revenue H. Wages payable P. Some other account not listed Debits Credits A. B. C. Transaction On December 1, 2011, collected $9,000 rent revenue in advance for some warehouse space temporarily rented to a customer (credited in full to Unearned rent). The rent was collected for December, January, and February. Office supplies purchased during 2011 amounted to $5,000 which was debited in full to office supplies during the year. The year-end inventory count of office supplies showed $600 of supplies on hand. The beginning inventory of office supplies was $800. On November 1, 2011, the company signed a $50,000, interest-bearing note payable. It was for one year and specified 12 percent annual interest payable at the maturity date of the note. Code Amount Code Amount Recording Adjusting Entries Yousef Company's annual accounting year ends on December 31. It is December 31, 2014, and all of the 2014 entries except the following adjusting entries have been made: a. On September 1, 2014, Yousef collected six months' rent of $16,800 on storage space. At that date, Yousef debited Cash and credited Unearned Rent Revenue for $16,800. b. On October 1, 2014, the company borrowed $36,000 from a local bank and signed a 12 percent note for that amount. The principal and interest are payable on the maturity date, September 30, 2015. c. Depreciation of $5,000 must be recognized on a service truck purchased on July 1, 2014, at a cost of $30,000. d. Cash of $6,000 was collected on November 1, 2014, for services to be rendered evenly over the next year beginning on November 1. Unearned Service Revenue was credited when the cash was received. e. On November 1, 2014, Yousef paid a one-year premium for property insurance, $18,000, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount. f. The company earned service revenue of $8.000 on a special job that was completed December 29, 2014. Collection will be made during January 2015. No entry has been recorded. g. At December 31, 2014, wages earned by employees totaled $28,000. The employees will be paid on the next payroll date, January 15, 2015. h. On December 31, 2014, the company estimated it owed $1,000 for 2014 property taxes on land. The tax will be paid when the bill is received in January 2015. Required: independent, licensed accountant hol the company to audit the conspany's adipi 1. Indicate whether each transaction relates to a deferred revenue, deferred expense, accrued revenue, or accrued expense. 2. Give the adjusting entry required for each transaction at December 31, 2014. sled bas prizola pribo 1. Center Company is completing the accounting cycle at the end of the annual accounting period, December 31, 2011. No adjusting entries have been made during the year so three adjusting entries must be made at this date to update the accounts. The following accounts, selected from Center Company's chart of accounts, are to be used for this purpose. They are coded to the left for easy reference. A. Supplies expense I. Unearned rent B. Supplies J. Rent expense C. Interest receivable K. Wage expense D. Equipment L. Depreciation expense E. Accumulated depreciation M. Interest expense F. Notes payable N. Interest revenue G. Interest payable O. Rent revenue H. Wages payable P. Some other account not listed Debits Credits A. B. C. Transaction On December 1, 2011, collected $9,000 rent revenue in advance for some warehouse space temporarily rented to a customer (credited in full to Unearned rent). The rent was collected for December, January, and February. Office supplies purchased during 2011 amounted to $5,000 which was debited in full to office supplies during the year. The year-end inventory count of office supplies showed $600 of supplies on hand. The beginning inventory of office supplies was $800. On November 1, 2011, the company signed a $50,000, interest-bearing note payable. It was for one year and specified 12 percent annual interest payable at the maturity date of the note. Code Amount Code Amount Recording Adjusting Entries Yousef Company's annual accounting year ends on December 31. It is December 31, 2014, and all of the 2014 entries except the following adjusting entries have been made: a. On September 1, 2014, Yousef collected six months' rent of $16,800 on storage space. At that date, Yousef debited Cash and credited Unearned Rent Revenue for $16,800. b. On October 1, 2014, the company borrowed $36,000 from a local bank and signed a 12 percent note for that amount. The principal and interest are payable on the maturity date, September 30, 2015. c. Depreciation of $5,000 must be recognized on a service truck purchased on July 1, 2014, at a cost of $30,000. d. Cash of $6,000 was collected on November 1, 2014, for services to be rendered evenly over the next year beginning on November 1. Unearned Service Revenue was credited when the cash was received. e. On November 1, 2014, Yousef paid a one-year premium for property insurance, $18,000, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount. f. The company earned service revenue of $8.000 on a special job that was completed December 29, 2014. Collection will be made during January 2015. No entry has been recorded. g. At December 31, 2014, wages earned by employees totaled $28,000. The employees will be paid on the next payroll date, January 15, 2015. h. On December 31, 2014, the company estimated it owed $1,000 for 2014 property taxes on land. The tax will be paid when the bill is received in January 2015. Required: independent, licensed accountant hol the company to audit the conspany's adipi 1. Indicate whether each transaction relates to a deferred revenue, deferred expense, accrued revenue, or accrued expense. 2. Give the adjusting entry required for each transaction at December 31, 2014. sled bas prizola pribo