Among other items, the partial unadjusted trail balance of Filmblaster, Inc., a
ID: 2609832 • Letter: A
Question
Among other items, the partial unadjusted trail balance of Filmblaster, Inc., a movie rental company, at December 31 of the current year includes the following unadjusted account balances: er, Inc. Partial Unadjusted Account Balance December 31 Accounts Prepaid Insurance Prepaid Rent Supplies Equipment Accumulated Depreciation Equipment$1350 Balance $13650 $2064 $2060 $13500 Examination of the records shows that adjustments should be made for the following items, Prepare the annual year end adjusting journal entries at December 31: a) Of the Prepaid Insurance in the unadjusted trail balance, $5500 is for coverage remaining (or unused) at December 31st of the current year. Date Description Debit Credit Dec 31 L b) The balance in the Prepaid Rent account is for a 12-month period that started September1 of the current year. Date Description Debit Credit Dec 31 L c) s820 of interest has been earned on an outstanding Note Receivable but not received or recorded as of December 31st. Date Description Debit Credit Dec 31Explanation / Answer
a) Insurance expense 8150 (13650-5500) Prepaid insurance 8150 b) Rent expense 688 (2064*4/12) Prepaid rent 688 c) Interest receivable 820 Interest revenue 820 d) Supplies expense 1400 Supplies 1400 e) Depreciation expense 1350 Accumulated depreciation equipment 1350