Account Debit Credit $3,800 4,500 43,000 $120,000 Supplies Pre-paid Insurance Equipment FV-OCI Investments Accumulated Depreciation – Equipment Notes Payable Unearned Service Revenue Service Revenue $8,000 60,000 2,000 67,000 Interest Revenue 2,250 Interest Expense Salaries and Wages Expense $3,000 The following information is also available to you: 1. The annual depreciation expense for the equipment is $1,200 2. During the quarter, the entire amount of the unearned service revenue was earned 3. The annual interest rate on the note payable is 5%. Interest is due annually on January 1st. 4. Supplies on hand totalled $1,200 5. Insurance expires at a rate of $500 per month 6. The FV-OCI Investments were purchased on December 1. No investments were purchased or sold after that date. The fair value on December 31st, was $140,000. Required: 1. Prepare the adjustment entries at December 31st, assuming that all adjusting journal entries are made quarterly. Note: you may be required to use additional accounts than what are listed above. Please use appropriate account names in your analysis. We were unable to transcribe this image
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