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P$4-2($Algo$)$ Recording Adjusting Entries LO$4-1$

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$[$The following information applies to the questions displayed below.$]$

All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December $31.$

On September $1$ of the current year, Zimmerman collected six months' rent of $$8,100$ on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $$8,100.$

On October $1$ of the current year, the company borrowed $$22,800$ from a local bank and signed a one$-$year, $14$ percent note for that amount. The principal and interest are payable on the maturity date.

Depreciation of $$2,200$ must be recognized on a service truck purchased in July of the current year at a cost of $$21,000.$

Cash of $$3,900$ was collected on November of the current year for services to be rendered evenly over the next year beginning on November $1$ of the current year. Unearned Service Revenue was credited when the cash was received.

On November $1$ of the current year, Zimmerman paid a one$-$year premium for property insurance, $$9,720,$ for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount.

The company earned service revenue of $$4,500$ on a special job that was completed December $29$ of the current year. Collection will be made during January of the next year. No entry has been recorded.

At December $31$ of the current year, wages earned by employees totaled $$14,600.$ The employees will be paid on the next payroll date in January of the next year.

On December $31$ of the current year, the company estimated it owed $$580$ for this year's property taxes on land. The tax will be paid when the bill is received in January of next year.

P$4-2$ Part $1$

Required:

$1.$ Indicate whether each transaction relates to a deferred revenue, deferred expense, accrued revenue, or accrued expense.

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