Adjusting Accounts using the Financial Statement Effects Template $($FSET$)$

Selected accounts of Ideal Properties, a real estate management firm, are shown below as of

January $31$ before any adjusting entries have been made.

Unadjusted Account Balances Debits Credits

Prepaid insurance $$21,600$

Supplies inventory $5,790$

Office equipment $17,856$

Unearned rent liability $$15,720$

Salaries expense $9,300$

Rent revenue $45,000$

Monthly financial statements are prepared. Using the following information, report the

adjusting entries necessary on January $31$ using the financial statements effect template.

$1.$ Prepaid insurance represents a three$-$year premium paid on January $1.$

$2.$ Supplies of $$2,550$ were still available on January $31.$

$3.$ Office equipment purchased on January $1,$ is expected to last eight years.

Round calculation to the nearest whole number.

$4.$ On January $1,$ Ideal Properties collected six months' rent in advance from a tenant renting space

for $$2,620$ per month.

$5.$ Accrued employee salaries of $$735$ have not been recorded as of January $31.$

Balance Sheet Income Statement

Cash Noncash Contributed Earned Net

Transaction Asset $+$ Assets $=$ Liabilities $+$ Capital $+$ Capital Revenues $-$ Expenses $=$ Income

$1$ Adj. for prepaid insurance. Answer $1$

$0$

Answer $2$

$0$

Answer $3$

$0$

Answer $4$

$0$

Answer $5$

$0$

Answer $6$

$0$

Answer $7$

$0$

Answer $8$

$0$

$2$ Adj. for supplies used. Answer $9$

$0$

Answer $10$

$0$

Answer $11$

$0$

Answer $12$

$0$

Answer $13$

$0$

Answer $14$

$0$

Answer $15$

$0$

Answer $16$

$0$

$3$ Adj. for depreciation. Answer $17$

$0$

Answer $18$

$0$

Answer $19$

$0$

Answer $20$

$0$

Answer $21$

$0$

Answer $22$

$0$

Answer $23$

$0$

Answer $24$

$0$

$4$ Adj. for tenant rent. Answer $25$

$0$

Answer $26$

$0$

Answer $27$

$0$

Answer $28$

$0$

Answer $29$

$0$

Answer $30$

$0$

Answer $31$

$0$

Answer $32$

$0$

$5$ Adj. for salaries. Answer $33$

$0$

Answer $34$

$0$

Answer $35$

$0$

Answer $36$

$0$

Answer $37$

$0$

Answer $38$

$0$

Answer $39$

$0$

Answer $40$

$0$