Question

 1. A three-year fire insurance policy was purchased on July 1, 2021, for $15,840. The company debited insurance expense for the entire amount.

 2. Depreciation on equipment totaled $14,750 for the year.

 3. Employee salaries of $22,000 for the month of December will be paid in early January 2022.

 4. On November 1, 2021, the company borrowed $300,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2022.

 5. On December 1, 2021, the company received $9,000 in cash from another company that is renting office space in Falwell's building.

 The payment, representing rent for December, January, and February was credited to deferred rent revenue.

 6. On December 1, 2021, the company received $9,000 in cash from another company that is renting office space in Falwell's building. The payment, representing rent for December, January, and February was credited to rent revenue rather than deferred rent revenue for $9,000 on December 1, 2021.

 Prepare the necessary adjusting entries for each of the above situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

 View transaction list

 1 A three-year fire insurance policy was purchased on July 1, 2021, for $15,840. The company debited insurance expense for the entire amount.

 2 Depreciation on equipment totaled $14,750 for the year.

 3 Employee salaries of $22,000 for the month of December will be paid in early January 2022.

 4 On November 1, 2021, the company borrowed $300,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2022.

 5 On December 1, 2021, the company received $9,000 in cash for December, January, and February rent. Deferred

 6 On December 1, 2021, the company received $9,000 in cash for December, January, and February rent. Rent revenue was credited instead of deferred rent revenue.

Answer 1

Transaction	General Journal	Debit	Credit
1	Prepaid Insurance	$2,640
	Insurance Expenses		$2,640
	($15,840/3 years x 1/2)
2	Depreciation expense	$14,750
	Accumulated interest		$14,750
3	Salary Expense	$22,000
	Salary Payable		$22,000
4	Interest Expense	$6,000
	Interest Payable		$6,000
	($300,000 x 12% x 2/12)
5	Deferred Rent Revenue	$3,000
	Rent Revenue		$3,000
	($9,000/3)
6	Rent Revenue	$6,000
	Deferred Rent Revenue		$6,000
	($9,000 x 2/3)