Problem 5. ABC Co. began operations on January 1, 2019 and its annual accounting period ends on December 31. Record each of the following transactions and any related adjusting entries (if necessary) on December 31, 2019 (ABC Co. makes adjusting entries once a year on December 31^st).

1. On February 1, 2019, ABC Co. prepaid its three-year insurance premium of $2,600.

Assets = Liabilities + Stockholders Equity

2. On April 1, 2019, ABC Co. received $2,000 from customers for 12-month subscriptions to one of its magazines.

Assets = Liabilities + Stockholders Equity

3. ABC Co. pays its employees on Friday for that weeks work. Unpaid wages as of Monday, December 31, 2019 amount to $10,000.

Assets = Liabilities + Stockholders Equity

4. As an extension of part 3), prepare the journal entry to record the payment of the $50,000 weekly payroll on Friday, January 4, 2020.

Assets = Liabilities + Stockholders Equity