Show the adjusting entries that you would make given the additional data below.

In addition to the formal journal entry, please also indicate the type of adjusting entry that is being made,

 

ADJUSTING ENTRY #1;

The balance in the prepaid insurance account prior to adjustment was $4,800

Insurance expired during the year amounted to $2,000 for the Company.

 

ADJUSTING ENTRY #2;

Bad debts for the year are estimated by the Company to be $2,800. The Allowance for Uncollectible Accounts prior to adjustment has a $1,000 debit balance

 

ADJUSTING ENTRY #3:

Subscriptions of $18,000 received on October 1^st (for a 12 month subscription).

The company credited this to Sales Revenue (strangely!).

 

ADJUSTING ENTRY #4:

On July 1^st, the Company paid rent of $36,000 paid in advance for a 9 month period. This amount was recorded as Rent Expense on July 1St (strangely!).

 

ADJUSTING ENTRY #5:

The Company received a 5%, 6 month note receivable received from a customer on November 1^st. The face value of the note was $10,000. [Hint: Only focus on recording the interest on 12/31 for Highland Company, not the note. The 6 month amount is: 5% × $10,000 x 6/12]. Round to two decimal places.