Question: Problem 2 (10 minutes) (10 points) Prepare adjusting journal entries based on the information provided below. The company does not make monthly adjusting entries -

Problem 2 (10 minutes) (10 points) Prepare adjusting journal entries based

Problem 2 (10 minutes) (10 points) Prepare adjusting journal entries based on the information provided below. The company does not make monthly adjusting entries - all adjusting journal entries are made at year end, December 31, 2017. a) A one year insurance policy costing $3,600 was purchased on September 1, 2017. The policy was for the term September 1, 2017-August 31, 2018. b) The balance in the supplies account before any adjustments was $7,000. The supplies were counted and there are $1,000 of supplies left on hand. c) Deferred service revenue has a balance of $12,000 before any adjustments. 1/3 of this amount has been earned by December 31, 2017. d) Depreciation of equipment for the year is $7,200. e) Legal expense of $13,000 needs to be accrued. ACCOUNTS DEBIT CREDIT

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