Exercise $2-8($Algo$)$ Adjusting entries $[$LO$2-6]$

The following transactions occurred for the Fierro Company.

A three$-$year fire insurance policy was purchased on July $1,2024,$ for $$10,080.$ The company debited prepaid insurance for the entire

amount at the time of payment.

Depreciation on equipment totaled $$10,750$ for the year.

Employee salaries of $$13,500$ for the month of December will be paid in early January $2025.$

On November $1,2024,$ the company borrowed $$130,000$ from a bank. The note requires principal and interest at $12\%$ to be paid on

April $30,2025.$

On December $1,2024,$ the company received $$4,200$ in cash from another company that is renting office space in Fierro's building.

The payment, representing rent for December, January, and February was credited to deferred rent revenue at the time cash was

received.

Required:

Prepare the necessary adjusting entries at December $31,2024$ for each of the above situations. Assume that no financial statements

were prepared during the year and no adjusting entries were recorded.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

A three$-$year fire insurance policy was purchased on July $1,2024,$ for $$10,080.$

The company debited prepaid insurance for the entire amount at the time of

payment. Prepare the necessary adjusting entry on December $31,2024.$

Note: Enter debits before credits.