Q1- Ledger accounts of a company on September 30, 2020 include the following accounts before adjusting entries have been recorded.

Trial Balance (partial listing of selected accounts)

September 30, 2020

Debit Credit

Supplies ................................................................................ $ 2,700

Prepaid Insurance .................................................................. 4,800

Equipment ............................................................................. 16,200

Accumulated DepreciationEquipment ................................... $ 1,000

Unearned Rent Revenue .............................................................................................. 1,200

An analysis of the account balances provided the following information:

1. A physical count of office supplies revealed $1,000 still on hand on September 30, 2020.
2. The prepaid insurance is a two-year fire insurance policy that was purchased on September 1^st, 2020.
3. Office equipment depreciates $3,000 per year.
4. The unearned rent revenue covers 10 months starting from September 1^st, 2020.

Required: Using the information above, record the adjusting entries that should be made by this company on September 30.

Answer:

Account titles	Debit	Credit