Unit Activity 5 Practice Exercise - Adjusting Entries Each of the following is an independent situation Adjusting entries are prepared at year- end. On March 2014, a one- year insurance policy was purchased for $ 2280. The fiscal year end is March 31. a ) Record the original purchase of the policy on March 1 Calculate the adjusting entry and record it in on December 31. 2 Prepare the adjusting entries for the year ended December 31, 2014 for the following a ) The supplies account has an $800 balance. Actual supplies on hand December 31 , 2014 is 260 b ) Rent was paid for 3 months on November 1, 2014 for a total of 3300 ) A 12-month insurance policy was purchased on October 1 2014 for 1800. 3 On October , 2014We-R -Rentals received a $500 cheque for the rental of a storage unit for six months . a ) Record the entry in We-R -Rentals books on October 1 b Prepare the year -end adjusting entry on December 31 2014