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Exercise 3-6 (Algo) Preparing adjusting entries a. Depreciation on the company's equipment for the year is computed to be $16,000. b. The Prepaid Insurance account had a $5,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policles showed that $1,120 of unexpired insurance coverage remains. c. The Supplies account had a $390 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. The December 31 physical count showed $460 of supplies available. d. One-third of the work related to $15,000 of cash recelved in advance was performed this period. e. The Prepaid Rent account had a $5,600 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $4,480 of prepaid rent had expired. t. Wage expenses of $5,000 have been incurred but are not paid as of December 31 . Prepare adjusting journal entries for the year ended December 31 for each separate situation. Journal entry worksheet Note Emer debits before creents