St$.$ Thomas Yacht Services, Inc. completed its first month of operations and wishes to adjust the accounting records to ensure revenues and expenses are recorded properly.

On December $31,$ the following adjustments must be made:

The furniture, which has no salvage value and a $5$ year useful life, was depreciated using straight$-$line depreciation of $$183$ per month.

A physical count shows only $$1,200$ of supplies remains in the storage closet but accounting records show an unadjusted supplies amount of $$1500.$

One month of the $$24001-$year insurance policy has been used.

Complete Step $5$ of the Accounting Cycle: Prepare adjusting entries $($hint: use the Account List $-$ click to pop open to help you with your journal entries$).$

$\backslash$table$[[$Cash$,$Asset,Any money received or paid by the company$],[$Accounts Receivable,Asset,Work performed for customers but will receive payment later$],[$Office Supplies,Asset,Supplies to be used by the business in the future$],[$Prepaid Rent,Asset,Rent paid in advance of using$],[$Prepaid Insurance,Asset,Insurance paid in advance of using$],[$Furniture$,$Asset,Cost of furniture to be used in the business$],[$Accumulated Depreciation $-$ Furniture,Asset,Depreciation that has been recorded over time$],[$Office Equipment,Asset,Cost of equipment to be used in the business$],[$Accounts Payable,Liability,purchases we have not paid for but will pay later$],[$Unearned Revenue,Liability,payment received from customers in advance of performing work$],[$Notes Payable,Liability,loans received from signing a promissory note$],[$Common Stock,Equity,Owner investment in company$],[$Dividends$,$Equity,Earnings of the company given back to the owners$],[$Retained Earnings,Equity,Earnings of the company kept over time$],[$Service Revenue,Revenue,Value of work performed$],[$Rent Expense,Expense,Cost of rent we have used$],[$Depreciation Expense $-$ Furniture,Expense,Cost of depreciation expense for the current year$],[$Insurance Expense,Expense,Insurance amount that has been used or expired$],[$Utilities Expense,Expense,Cost of water, power, heating, etc. incurred by the company$],[$Supplies Expense,Expense,Supplies that have been used by the company$],[$Wages Expense,Expense,Cost of employee hourly payroll$]]$