Exercise 3-1 Preparing adjusting entries LO P1, P2, P3 a. Depreciation on the company's equipment for the year is computed to be $14,000. b. The Prepaid Insurance account had a $6,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,440 of unexpired insurance coverage remains. c. The Office Supplies account had a $390 debit balance at the beginning of the year; and $2,680 of office supplies were purchased during the year. The December 31 physical count showed $460 of supplies available. d. Two-thirds of the work related to $12,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $5,000 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $3,560 of prepaid rent had expired. f. Wage expenses of $4,000 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended (date of) December 31 for each of these separate situations. View transaction list Journal entry worksheet 1 2 3 4 5 6 > Depreciation on the company's equipment for the year is computed to be $14,000. Note: Enter debits before credits. General Journal Debit Credit Transaction a. Record entry Clear entry View general journal View transaction list Journal entry worksheet The Prepaid Insurance account had a $6,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,440 of unexpired insurance coverage remains. Note: Enter debits before credits. General Journal Debit Credit Transaction b. Record entry Clear entry View general Journal View transaction list Journal entry worksheet