S3-5 Identifying types of adjusting entries Learning Objective 3 A select list of transactions for Anuradha's Goals follows: For each transaction, identify what type of adjusting entry would be needed. Select from the following four types of adjusting entries: deferred expense, deferred revenue, accrued expense, accrued revenue. E3-22 Journalizing adjusting entries Learning Objective 3 e. DR Insurance Expense $2,250 Consider the following independent situations at December 31 : a. On July 1, a business collected $7,200 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. On December 31, the business must account for the amount of rent it bas earned. b. Salaries expense is $1,000 per day-Monday through Friday-and the business pays employees each Friday. This year December 31 falls on a Thursday. e. The unadjusted balance of the Office Supplies account is $3,400. Office supplies on hand total $1,900. d. Equipment depreciation was $200. e. On April 1, when the business prepaid $6,000 for a two-year insurance policy, the business debited Prepaid Insurance and Credited Cash. Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries. E.3-25 Journalizing adjusting entries and posting to T-accounts Learning Objective 3 3. Office Supplies bal. SI,100 DR The unadjusted trial balance for First Class Maids Company, a cleaning service, is as follows