Question

Among other items, the partial unadjusted trail balance of Filmblaster, Inc., a movie rental company, at December 31 of the current year includes the following unadjusted account balances: Filmblaster, Inc. Partial Unadjusted Account Balance December 31 Accounts Balance Prepaid Insurance $13750 Prepaid Rent $2928 Supplies $4740 Equipment $16500 Accumulated Depreciation - Equipment $1650 Examination of the records shows that adjustments should be made for the following items, Prepare the annual year end adjusting journal entries at December 31: a) of the Prepaid Insurance in the unadjusted trail balance, $3000 is for coverage during the months after December 31st of the current year. Date Description Debit Credit Dec 31 b) The balance in the Prepaid Rent account is for a 12 month period that started September 1 of the current year Date Description Debit Credit

Answer 1

Date	Account Name	Debit	Credit
Dec-31	Insurance expense ($13,750-$3,000)	$   10,750
	Prepaid insurance		$   10,750
Dec-31	Rent expense ($2,928/12*4)	$        976
	Prepaid rent		$        976
Dec-31	Interest receivable	$        540
	Interest revenue		$        540
Dec-31	Supplies expense	$     1,450
	Supplies		$     1,450
Dec-31	Depreciation expense	$     1,650
	Accumulated depreciation - Equipment		$     1,650

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