Quisp Co. had the following transactions in the last two months of its year ended December 31.

Nov. 1 Paid $1,500 cash for future newspaper advertising.
 1 Paid$2,160 cash for 12 months of insurance through October 31 of the next year.
 30 Received $3,300 cash for future services to be provided to a customer.

Dec. 1 Paid$2,700 cash for a consultant’s services to be received over the next three months.
 15 Received $7,650 cash for future services to be provided to a customer.
 31 Of the advertising paid for on November 1,$900 worth is not yet used.
 31 A portion of the insurance paid for on November 1 has expired. No adjustment was made in November to Prepaid Insurance.
 31 Services worth $1,200 are not yet provided to the customer who paid on November 30.
 31 One-third of the consulting services paid for on December 1 have been received.
 31 The company has performed$3,000 of services that the customer paid for on December 15.

Required
1. Prepare entries for these transactions under the method that records prepaid expenses as assets and records unearned revenues as liabilities. Also prepare adjusting entries at the end of the year.
2. Prepare entries for these transactions under the method that records prepaid expenses as expenses and records unearned revenues as revenues. Also prepare adjusting entries at the end of the year.

Analysis Component
3. Discuss why the alternative sets of entries in requirements 1 and 2 do not result in different financial statement amounts.

Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR), accrued expenses (AE), or accrued revenues (AR).

______ a. To record revenue earned that was previously received as cash in advance.

Problem 3-6A Applying the accounting cycle LO PL, P2 P3, P4, P5

On April 1. 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the first month.

• April 1 - Nozomi invested $36,000 cash and computer equipment worth$20.000 in the company in exchange for common stock

• April 2 - The company rented furnished office space by paying $1,800 cash for the first month's (April) rent.

• April 3 - The company purchased$1,300 of office supplies for cash

• April 10 - The company paid $2,300 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.

• April 14 - The company paid$1,800 cash for two weeks' salaries earned by employees.

• April 24 - The company collected $21,500 cash on commissions from airlines on tickets obtained for customers

• April 28 - The company paid$1,800 cash for two weeks' salaries earned by employees.

• April 29 - The company paid $450 cash for minor repairs to the company's computer.

• April 30 - The company paid$900 cash for this month's telephone bill.

• April 30 - The company paid $2,000 cash in dividends.

The company's chart of accounts follows:

Use the following information:

a. Two-thirds (or$128) of one month's insurance coverage has expired.

b. At the end of the month, $700 of office supplies are still available.

c This month's depreciation on the computer equipment is$500.

d. Employees earned $320 of unpaid and unrecorded salaries as of month-end.

e. The company earned$2,100 of commissions that are not yet billed at month-end.

Required:

• 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b company records prepaid and unearned items in balance sheet accounts
• 3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30
• 4. Journalize and post the adjusting entries for the month and prepare the adjusted trial balance
• 5. (a). Prepare the income statement for the month of April 30, 2017
• 5. (b). Prepare the statement of retained earnings for the month of April 30, 2017.
• 5. (c) Prepare the balance sheet as of April 30, 2017
• 6. (a). Prepare journal entries to close the temporary accounts and then post to Requirement 6b.
• 6. (b). Post the journal entries to the ledger.
• 7. Prepare a post-closing trial balance.

Arnez Company’s annual accounting period ends on December 31, 2017. The following information concerns the adjusting entries to be recorded as of that date. (Entries can draw from the following partial chart of accounts: Cash; Rent Receivable; Office Supplies; Prepaid Insurance; Building; Accumulated Depreciation—Building; Salaries Payable; Unearned Rent; Rent Earned; Salaries Expense; Office Supplies Expense; Insurance Expense; Depreciation Expense—Building.) a. The Office Supplies account started the year with a $4,000 balance. During 2017, the company purchased supplies for$13,400, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2017, totaled $2,554. b. An analysis of the company’s insurance policies provided the following facts.$

$$\begin{matrix} \text{Policy} & \text{Date of Purchase} & \text{Months of Coverage} & \text{Cost}\\ \text{A} & \text{April 1, 2015} & \text{24} & \text{\$14,400}\\ \text{B} & \text{April 1, 2016} & \text{36} & \text{12,960}\\ \text{C} & \text{August 1, 2017} & \text{12} & \text{2,400}\\ \end{matrix}$$

$The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.) c. The company has 15 employees, who earn a total of$1,960 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31, 2017, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year’s Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2018. d. The company purchased a building on January 1, 2017. It cost $960,000 and is expected to have a$45,000 salvage value at the end of its predicted 30-year life. Annual depreciation is $30,500. e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at$3,000 per month, starting on November 1, 2017. The rent was paid on time on November 1, and the amount received was credited to the Rent Earned account. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15. The tenant has agreed not to fall behind again. f. On November 1, the company rented space to another tenant for $2,800 per month. The tenant paid five months’ rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account. 1. Use the information to prepare adjusting entries as of December 31, 2017. 2. Prepare journal entries to record the first subsequent cash transaction in 2018 for parts c and e.

Arnez Company's annual accounting period ends on December 31, 2017. The following information concerns the adjusting entries to be recorded as of that date. (Entries can draw from the following partial chart of accounts: Cash; Rent Receivable; Office Supplies; Prepaid Insurance; Building; Accumulated Depreciation—Building; Salaries Payable; Unearned Rent; Rent Earned; Salaries Expense; Office Supplies Expense; Insurance Expense; Depreciation Expense—Building.)

Required
1. Use the information to prepare adjusting entries as of December 31, 2017.
2. Prepare journal entries to record the first subsequent transaction in 2018 for parts c and e.

c. The company has 15 employees, who earn a total of $1,960 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31, 2017, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year's Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2018.

On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.

$$\begin{matrix} \text{Apr. 1 } & \text{Nozomi invested \$30,000 cash and computer equipment worth \$20,000 in the company in exchange for common stock.}\\ \text{2} & \text{The company rented furnished office space by paying \$1,800 cash for the first month’s (April) rent.}\\ \text{3} & \text{The company purchased \$1,000 of office supplies for cash}\\ \text{10} & \text{The company paid \$2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.}\\ \text{14} & \text{The company paid \$1,600 cash for two weeks’ salaries earned by employees.}\\ \text{24} & \text{The company collected \$8,000 cash on commissions from airlines on tickets obtained for customers}\\ \text{28} & \text{The company paid \$1,600 cash for two weeks’ salaries earned by employees.}\\ \text{29} & \text{The company paid \$350 cash for minor repairs to the company’s computer}\\ \text{30} & \text{The company paid \$750 cash for this month’s telephone bill.}\\ \text{30} & \text{The company paid \$1,500 cash in dividends.}\\ \end{matrix}$$

The company’s chart of accounts follows:

$$\begin{matrix} \text{101} & \text{Cash} & \text{405} & \text{Commissions Earned}\\ \text{106 } & \text{Accounts Receivable} & \text{612} & \text{Depreciation Expense—Computer Equip.}\\ \text{124} & \text{Office Supplies} & \text{622} & \text{Salaries Expense}\\ \text{128} & \text{Prepaid Insurance} & \text{637} & \text{Insurance Expense}\\ \text{167} & \text{Computer Equipment} & \text{640} & \text{Rent Expense}\\ \text{168} & \text{Accumulated Depreciation—Computer Equip.} & \text{650} & \text{Office Supplies Expense}\\ \text{209} & \text{Salaries Payable} & \text{684} & \text{Repairs Expense}\\ \text{307} & \text{Common Stock} & \text{688} & \text{Telephone Expense}\\ \text{318} & \text{Retained Earnings} & \text{901} & \text{Income Summary}\\ \text{319} & \text{Dividends}\\ \end{matrix}$$

1. Use the balance column format to set up each ledger account listed in its chart of accounts. 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts. The company records prepaid and unearned items in balance sheet accounts. 3. Prepare an unadjusted trial balance as of April 30. 4. Use the following information to journalize and post adjusting entries for the month: a. Two-thirds (or $133) of one month’s insurance coverage has expired. b. At the end of the month,$600 of office supplies are still available. c. This month’s depreciation on the computer equipment is $500. d. Employees earned$420 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,750 of commissions that are not yet billed at month-end. 5. Prepare the adjusted trial balance as of April 30. Prepare the income statement and the statement of retained earnings for the month of April and the balance sheet at April 30, 2017. 6. Prepare journal entries to close the temporary accounts and post these entries to the ledger. 7. Prepare a post-closing trial balance.

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2010 is shown below. Descriptions of items a through f that require adjusting entries on December 31, 2010, follow.

Additional Information
a. An analysis of the school's insurance policies shows that $2,400 of coverage has expired.
b. A count shows that teaching supplies costing$2,800 are available at year-end 2010.
c. Annual depreciation on the equipment is $13,200.
d. Annual depreciation on the professional library is$7,200.
e. The school's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
f. The balance in the Prepaid Rent account represents rent for December.

$$\begin{array}{c} \textbf{WELLS TECHNICAL INSTITUTE}\\ \textbf{Unadjusted Trial Balance}\\ \textbf{December 31, 2010} \end{array}$$

Required
1. Using Exhibit 5.11 as a guide, create a seven-column sheet with the following headings:

2. Enter the account titles and balances in the unadjusted trial balance columns onto your sheet.
3. Prepare the necessary adjusting journal entries for items a through f and record them in the adjustments column. Assume that adjusting entries are made only at year end.
4. Compute adjusted account balances and enter the balances in the adjusted trial balance columns.
5. Prepare Wells Technical Institute's income statement and statement of owner's equity for the year 2010 and prepare its balance sheet as of December 31, 2010. The owner made no additional invest- ments during the year.

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow.

Additional Information Items
a. An analysis of WTI's insurance policies shows that $2,400 of coverage has expired.
b. An inventory count shows that teaching supplies costing$2.800 are available at year-end 2017.
c. Annual depreciation on the equipment is $13,200.
d. Annual depreciation on the professional library is$7,200.
e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,500, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.
f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for$3,000 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)
g. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
h. The balance in the Prepaid Rent account represents rent for December.

$$\begin{array}{c} \textbf{WELLS TECHNICAL INSTITUTE}\\ \textbf{Unadjusted Trial Balance}\\ \textbf{December 31, 2017} \end{array}$$

Required

1. Prepare T-accounts (representing the ledger) with balances from the unadjusted trial balance.
2. Prepare the necessary adjusting journal entries for items a through h and post them to the T-accounts. Assume that adjusting entries are made only at year-end.
3. Update balances in the T-accounts for the adjusting entries and prepare an adjusted trial balance.
4. Prepare Wells Technical Institute's income statement and statement of owner's equity for the year 2017 and prepare its balance sheet as of December 31, 2017.

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31 follows, along with descriptions of items a through h that require adjusting entries on December 31.

Additional Information a. An analysis of WTl's insurance policies shows that $2,400 of coverage has expired.

b. An inventory count shows that teaching supplies costing$2,800 are available at year-end.

c. Annual depreciation on the equipment is $13,200.

d. Annual depreciation on the professional library is$7,200.

e. On September 1, WTI agreed to do five courses for a client for $2,500 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid$12,500 cash in advance for all five courses on September 1 , and WTI credited Unearned Training Fees.

f. On October 15. WTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31. $7,500 of the tuition has been earned by WTI.

g. WTI's two employees are paid weekly, As of the end of the year, two days' salaries have accrued at the rate of$100 per day for each employee.

h. The balance in the Prepaid Rent account represents rent for December.

$$\begin{array}{c} \textbf{WELLS TECHNICAL INSTIUTE}\\ \textbf{Unadjusted Trial Balance}\\ \textbf{December 31}\\ \end{array}$$

$$\begin{array}{lrr} \text{}&\underline{\textbf{Debit}}&\underline{\textbf{Credit}}\\[5pt] \text{Cash}&\text{\$34,000}&\text{}\\ \text{Accounts receivable}&\text{0}&\text{}\\ \text{Teaching supplies}&\text{8,000}&\text{}\\ \text{Prepaid insurance}&\text{12,000}&\text{}\\ \text{Prepaid rent}&\text{3,000}&\text{}\\ \text{Professional library}&\text{35,000}&\text{}\\ \text{Accumulated depreciation-Professional library}&\text{}&\text{\$10,000}\\ \text{Equipment}&\text{80,000}&\text{}\\ \text{Accumulated depreciation-Equipment}&\text{}&\text{15,000}\\ \text{Accounts payable}&\text{}&\text{26,000}\\ \text{Salaries payable}&\text{}&\text{0}\\ \text{Unearned training fees}&\text{}&\text{12,500}\\ \text{Common stock}&\text{}&\text{10,000}\\ \text{Retained earnings}&\text{}&\text{80,000}\\ \text{Dividends}&\text{50,000}&\text{}\\ \text{Tuition fees earned}&\text{}&\text{123,900}\\ \text{Training fees earned}&\text{}&\text{40,000}\\ \text{Depreciation expense-Professional library}&\text{0}&\text{}\\ \text{Depreciation expense-Equipment}&\text{0}&\text{}\\ \text{Salaries expense}&\text{50,000}&\text{}\\ \text{Insurance expense}&\text{0}&\text{}\\ \text{Rent expense}&\text{33,000}&\text{}\\ \text{Teaching supplies expense}&\text{0}&\text{}\\ \text{Advertising expense}&\text{6,000}&\text{}\\ \text{Utilities expense}&\underline{\text{\hspace{15pt}6,400}}&\underline{\text{\hspace{38pt}}}\\ \text{Totals}&\underline{\underline{\text{\$317,400}}}&\underline{\underline{\text{\$317,400}}}\\ \end{array}$$

Required

1. Prepare T-accounts (representing the ledger) with balances From the unadjusted trial balance.

2. Prepare the necessary adjusting journal entries for items a through h and post them to the T-accounts. Assume that adjusting entries are made only at year-end.

3. Update balances in the T-accounts for the adjusting entries and prepare an adjusted trial balance.

4. Prepare Wells Technical Institute's income statement and statement of retained earnings for the year and prepare its balance sheet as of December 31. The Retained Earnings account balance was $80,000 on December 31 of the prior year.

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31,2015 , follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items $a$ through $h$ that require adjusting entries on December 31, 2015, follow.

Additional Information Items a. An analysis of WTI's insurance policies shows that $\$ 2,400$ of coverage has expired. b. An inventory count shows that teaching supplies costing $\$ 2,800$ are available at year-end 2015 . c. Annual depreciation on the equipment is $\$ 13,200$. d. Annual depreciation on the professional library is $\$ 7,200$. e. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $\$ 2,500$, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2016. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $\$ 3,000$ tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) g. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $\$ 100$ per day for each employee. h. The balance in the Prepaid Rent account represents rent for December.

Required

1. Prepare T-accounts (representing the ledger) with balances from the unadjusted trial balance.
2. Prepare the necessary adjusting journal entries for items$a$through$h$ and post them to the T-accounts. Assume that adjusting entries are made only at year-end.
3. Update balances in the T-accounts for the adjusting entries and prepare an adjusted trial balance.
4. Prepare Wells Technical Institute's income statement and statement of owner's equity for the year 2015 and prepare its balance sheet as of December 31, 2015.

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items athrough h that require adjusting entries on December 31, 2017, follow.

• On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,800, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.

• On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for$2,461 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)

• WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.

• The balance in the Prepaid Rent account represents rent for December.

$$\begin{array}{c} \textbf{WELLS TECHNICAL INSTITUTE} \\ \textbf{Unadjusted Trial Balance} \\ \textbf{December 31, 2017} \end{array}$$

$$\begin{array}{l|rr} \hline \text{Account title}&\text{Debit}&\text{Credit}\\ \hline \text{Cash} & \$\hspace{3pt}27,094\\ \text{Accounts receivable} & 0\\ \text{Teaching supplies} & 10,420\\ \text{Prepaid insurance} & 15,632\\ \text{Prepaid rent} & 2,085\\ \text{Professional library} & 31,262\\ \text{Accumulated depreciation—Professional library} && \$\hspace{8pt} 9,380\\ \text{Equipment} & 72,935\\ \text{Accumulated depreciation—Equipment} & & 16,675\\ \text{Accounts payable} & & 34,976\\ \text{Salaries payable} && 0\\ \text{Unearned training fees} & & 14,000\\ \text{Common stock } && 14,000\\ \text{Retained earnings} && 52,277\\ \text{Dividends} & 41,684\\ \text{Tuition fees earned} && 106,293\\ \text{Training fees earned } && 39,599\\ \text{Depreciation expense—Professional library} & 0\\ \text{Depreciation expense—Equipment} & 0\\ \text{Salaries expense} & 50,022\\ \text{Insurance expense} & 0\\ \text{Rent expense} & 22,935\\ \text{Teaching supplies expense} & 0\\ \text{Advertising expense} & 7,295\\ \text{Utilities expense} & 5,836\\ \\ \hline \text{Totals} & \$287,200 & \$287,200 \\ \hline \hline \end{array}$$

2-b. Prepare an adjusted trial balance.

True or False. If the company purchased a building at the beginning of this year it cost $670,000 and is expected to have a$45,000 salvage value at the end of its predicted 30 year life, then the annual depreciation is $20,833.

Vortex Company operates a retail store with two departments. Information about those departments follows.

$$\begin{matrix} & \text{Department A} & \text{Department B}\\ \text{Sales} \ldots\ldots\ldots & \text{\$800,000} & \text{\$450,000}\\ \text{Cost of goods sold}\ldots\ldots\ldots & \text{497,000} & \text{291,000}\\ \text{Direct expenses}\\ \text{Salaries}\ldots\ldots\ldots & \text{125,000} & \text{88,000}\\ \text{Insurance}\ldots\ldots\ldots & \text{20,000} & \text{10,000}\\ \text{Utilities} \ldots\ldots\ldots & \text{24,000} & \text{14,000}\\ \text{Depreciation}\ldots\ldots\ldots & \text{21,000} & \text{12,000}\\ \text{Maintenance}\ldots\ldots\ldots & \text{7,000} & \text{5,000}\\ \end{matrix}$$

The company also incurred the following indirect costs.

$$\begin{matrix} \text{Salaries }\ldots\ldots\ldots & \text{\$36,000}\\ \text{Insurance} \ldots\ldots\ldots & \text{6,000}\\ \text{Depreciation} \ldots\ldots\ldots & \text{15,000}\\ \text{Office expenses} \ldots\ldots\ldots & \text{50,000}\\ \end{matrix}$$

Indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. Additional information about the departments follows.

$$\begin{matrix} \text{Department} & \text{Square Footage} & \text{Number of Employees}\\ \text{A}\ldots\ldots\ldots & \text{28,000} & \text{75}\\ \text{B} \ldots\ldots\ldots & \text{12,000} & \text{50}\\ \end{matrix}$$

1. For each department, determine the departmental contribution to overhead and the departmental net income. 2. Should Department B be eliminated? Explain.

Arnez Company’s annual accounting period ends on December 31. The following information concerns the adjusting entries to be recorded as of that date.

a. The Office Supplies account started the year with a $4,000 balance. During the year, the company purchased supplies for$13,400, which was added to the Office Supplies account. The inventory of supplies available on December 31, totaled $2,554.

b. The Prepaid Insurance account had a$20,000 debit balance on December 31 before adjusting for the costs of any expired coverage for the year. An analysis of prepaid insurance shows that $12,880 of unexpired insurance coverage remains at year-end.

c. The company has 15 employees, who earn a total of$1,960 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year’s Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6 of next year.

d. The company purchased a building at the beginning of the year. It cost $960,000 and is expected to have a$45,000 salvage value at the end of its predicted 30-year life. Annual depreciation is $30,500.

e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at$3,000 per month starting on November 1. The rent was paid on time on November 1, and the amount received was credited to Rent Revenue However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15.

f. On November 1, the company rented space to another tenant for $2,800 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Uneamed Revenue account. Assume no other adjusting entries are made during the year.

Required:

Use the information to prepare adjusting entries.