For each separate case, record the necessary adjusting entry.

b. Caden started a new publication called Contest News. Its subscribers pay $24 to receive 12 monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1. It sends Contest News to each of these subscribers every month from July through December. Assuming no changes in subscribers, prepare the year-end journal entry that Caden must make as of December 31 to adjust the Subscription Revenue account and the Unearned Subscription Revenue account.

Tao Co. receives $10,000 cash in advance for four months of legal services on October 1, 2017 and records it by debiting Cash and crediting Unearned Revenue both for$10,000. It is now December 31, 2017, and Tao has provided legal services as planned. What adjusting entry should Tao make to account for the work performed from October 1 through December 31, 2017?

For each separate case, record the necessary adjusting entry.

a. Tao Co. receives $10,000 cash in advance for four months of evenly planned legal services beginning on October 1. Tao records it by debiting Cash and crediting Unearned Revenue both for$10,000. It is now December 31, and Tao has provided legal services as planned. What adjusting entry should Tao make to account for the work performed from October 1 through December 31?

b. Caden started a new publication called Contest News. Its subscribers pay $24 to receive 12 monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1. It sends Contest News to each of these subscribers every month from July through December. Assuming no changes in subscribers, prepare the year-end journal entry that Caden must make as of December 31 to adjust the Subscription Revenue account and the Unearned Subscription Revenue account.

For each separate case, record an adjusting entry (if necessary).

a. Barga Company purchases $20,000 of equipment on January 1. The equipment is expected to last five years and be worth$2,000 at the end of that time. Prepare the entry to record one year’s depreciation expense of $3,600 for the equipment as of December 31.

a. Tao Co. receives $\$ 10,000$ cash in advance for 4 months of legal services on October 1,2015 , and records it by debiting Cash and crediting Unearned Revenue both for $\$ 10,000$. It is now December 31, 2015 , and Tao has provided legal services as planned. What adjusting entry should Tao make to account for the work performed from October 1 through December 31, 2015? b. A. Caden started a new publication called Contest News. Its subscribers pay $\$ 24$ to receive 12 monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1, 2015. It sends Contest News to each of these subscribers every month from July through December. Assuming no changes in subscribers, prepare the journal entry that Caden must make as of December 31, 2015, to adjust the Subscription Revenue account and the Unearned Subscription Revenue account.

Assume Earl Cofee Roasters Corporation ended the month of August 2016 with these data:

$$\begin{array}{lrlr} \text{Payments of cash:}\\ \text{Acquisition of equipment}&\$ 202,100&\text{Cash balance, August 1,2016}&\$0\\ \text{Dividends}& 3,000 &\text{Cash balance, August 31, 2016} &5,300\\ \text{Retained earnings}& &\text{Cash receipts:}\\ \quad\text{August 1, 2016}&0&\text{Issuance (sale) of stock}\\ \text{Retained earnings}& &\quad\text{to owners}& 24,600\\ \quad\text{August 31, 2016}& ? &\text{Rent expense}& 1,900\\ \text{Utilities expense}& 5,900 &\text{Common stock}&24,600\\ \text { Adjustments to reconcile } && \text {Equipment} &202,100\\ \quad\text{net income to net cash}&&\text{Office supplies}& 7,300\\ \quad\text{provided by operations}& 1,500 &\text{Accounts payable}&8,800\\ \text { Salary expense} & 78,700&\text { Service revenue} & 270,800\ \end{array}$$

1. Prepare the balance sheet of Earl Coffee Roasters Corporation at August 31, 2016.

For each separate case, record the necessary adjusting entry.

a. Tao Co. receives $10,000 cash in advance for four months of evenly planned legal services beginning on October 1. Tao records it by debiting Cash and crediting Unearned Revenue both for$10,000. It is now December 31, and Tao has provided legal services as planned. What adjusting entry should Tao make to account for the work performed from October 1 through December 31?

For each separate case below, follow the three-step process for adjusting the unearned revenue liability account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year.

Unearned Rent Revenue. On September 1, a client paid the company $24,000 cash for six months of rent in advance (the client leased a building and took occupancy immediately). The company recorded the cash as Unearned Rent Revenue.

For each separate case below, follow the three-step process for adjusting the prepaid asset account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year. a. Prepaid Insurance. The Prepaid Insurance account has a $4,700 debit balance to start the year. A review of insurance policies and payments shows that$900 of unexpired insurance remains at year-end. b. Prepaid Insurance. The Prepaid Insurance account has a $5,890 debit balance at the start of the year. A review of insurance policies and payments shows$1,040 of insurance has expired by year-end. c. Prepaid Rent. On September 1 of the current year, the company prepaid $24,000 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for$24,000.

a. Barga Company purchases $20,000 of equipment on January 1, 2017. The equipment is expected to last five years and be worth$2,000 at the end of that time. Prepare the entry to record one year’s depreciation expense of $3,600 for the equipment as of December 31, 2017. b. Welch Company purchases$10,000 of land on January 1, 2017. The land is expected to last indefinitely. What depreciation adjustment, if any, should be made with respect to the Land account as of December 31, 2017?

a. Tao Co. receives $10,000 cash in advance for four months of legal services on October 1, 2017, and records it by debiting Cash and crediting Unearned Revenue both for$10,000. It is now December 31, 2017, and Tao has provided legal services as planned. What adjusting entry should Tao make to account for the work performed from October 1 through December 31, 2017? b. A. Caden started a new publication called Contest News. Its subscribers pay $24 to receive 12 monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1, 2017. It sends Contest News to each of these subscribers every month from July through December. Assuming no changes in subscribers, prepare the journal entry that Caden must make as of December 31, 2017, to adjust the Subscription Revenue account and the Unearned Subscription Revenue account.

Barga Company purchases $20,000 of equipment on January 1, 2017. The equipment is expected to last five years and be worth$2,000 at the end of that time. Prepare the entry to record one year's depreciation expense of $3,600 for the equipment as of December 31, 2017.

For each separate case, record the necessary adjusting entry.

a. On July 1, Lopez Company paid $1,200 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. Prepare the year-end adjusting entry to reflect expiration of the insurance as of December 31.

b. Zim Company has a Supplies account balance of$5,000 at the beginning of the year. During the year, it purchases $2,000 of supplies. As of December 31, a physical count of supplies shows$800 of supplies available. Prepare the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31.

Record year-end adjusting entry to reflect expiration of the insurance as of December 31.