Among other items the partial unadjusted trail balance of Fi

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: er, Inc. Partial Unadjusted Account Balance December 31 Accounts Prepaid Insurance Prepaid Rent Supplies Equipment Accumulated Depreciation Equipment$1350 Balance $13650 $2064 $2060 $13500 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, $5500 is for coverage remaining (or unused) at December 31st of the current year. Date Description Debit Credit Dec 31 L b) The balance in the Prepaid Rent account is for a 12-month period that started September1 of the current year. Date Description Debit Credit Dec 31 L c) s820 of interest has been earned on an outstanding Note Receivable but not received or recorded as of December 31st. Date Description Debit Credit Dec 31

Solution

a) Insurance expense 8150 (13650-5500)              Prepaid insurance 8150 b) Rent expense 688 (2064*4/12)             Prepaid rent 688 c) Interest receivable 820             Interest revenue 820 d) Supplies expense 1400             Supplies 1400 e) Depreciation expense   1350              Accumulated depreciation equipment 1350