Question

an accountant made the following adjustments at december 31, the end of the accounting period. requirement 1. journalize the adjusting entries. (record debits first, then credits. exclude explanations from any journal entries.) a. prepaid insurance, beginning, $500. payments for insurance during the period, $2,000. prepaid insurance, ending, $400. b. interest revenue accrued, $2,500. c. unearned service revenue, beginning, $1,700. unearned service revenue, ending, $300. d. depreciation on building, $5,600. e. employees salaries owed for two days of a five - day work week; weekly payroll, $19,000. f. income before income tax, $21,000. income tax rate is 35%.

Explanation:

Step1: Calculate insurance expense

Insurance expense = Beginning prepaid insurance + Insurance payments - Ending prepaid insurance. So, $500 + 2000 - 400=\$2100$.

Step2: Journal - entry for prepaid insurance adjustment

Debit the insurance expense account to record the expense incurred and credit the prepaid insurance account to reduce the prepaid amount.

Answer:

Accounts	Debit	Credit
Prepaid Insurance		$2100$