(Learning Objective 3: Journalizing adjusting entries) Clark Motor Company faced the following situations. Journalize the adjusting entry needed at December 31, 20X6, for each situation. Consider each fact separately.
a. The business has interest expense of $9,000 that it must pay early in January 20X7.
b. Interest revenue of $3,000 has been earned but not yet received.
c. On July 1, when we collected $3,000 rent in advance, we debited Cash and credited Unearned Rent Revenue. The tenant was paying us for 2 years rent.
d. Salary expense is $1,000 per dayMonday through Fridayand the business pays employees each Friday. This year, December 31 falls on a Tuesday.
e. The unadjusted balance of the Supplies account is $3,100. The total cost of supplies on hand is $800.
f. Equipment was purchased at the beginning of this year at a cost of $60,000. The equipments useful life is 5 years. Record depreciation for this year and then determine the equipments book value.