P3-70B. (Learning Objective 3: Making accounting adjustments) Journalize the adjusting entry needed on December 31, the end of the current accounting period, for each of the follow ing independent cases affecting Sawyer Corp. Include an explanation for each entry.

b. Sawyer pays employees each Friday. The amount of the weekly payroll is ?5,400 for a five-day work week. The current accounting period ends on Wednesday. c. Sawyer has a note receivable. During the current year, Sawyer has earned accrued inter-est revenue of ?800 that it will collect next year. d. The beginning balance of supplies was ?2,900. During the year, Sawyer purchased sup-plies costing ?6,200, and at December 31 supplies on hand total ?2,300. e. Sawyer is providing services for Orca Investments, and the owner of Orca paid Sawyer ?12,500 as the annual service fee. Sawyer recorded this amount as Unearned Service Revenue. Sawyer estimates that it has earned 60% of the total fee during the current year. f. Depreciation for the current year includes office furniture, ?3,500, and equipment, ?5,400. Make a combined entry.

P3-70B. (Learning Objective 3: Making accounting adjustments) J ournalize the adjusting entry needed on December 31, the end of the current accounting period, for each of the follow- ing independent cases affecting Sawyer Corp. .' . Details of Prepaid Insurance are shown in the account: Prepaid Insurance Jan. 1 Bal. 500 Mar. 31 3,300 Sawyer prepays insurance on March 31 each year. At December 31, 700 is still prepaid. Sawyer pays employees each Friday. The amount of the weekly payroll is 5,400 for a ve-day work week. The current accounting period ends on Wednesday. . Sawyer has a note receivable. During the current year, Sawyer has earned accrued inter est revenue of 800 that it will collect next year. . The beginning balance of supplies was 2,900. During the year, Sawyer purchased sup- plies costing 6,200, and at December 31 supplies on hand total 2,300. . Sawyer is providing services for Orca Investments, and the owner of Orca paid Sawyer 12,500 as the annual service fee. Sawyer recorded this amount as Unearned Service Revenue. Sawyer estimates that it has earned 60% of the total fee during the current year. Depreciation for the current year includes ofce furniture, 3,500, and equipment, 5,400. Make a combined entry