Reference no: EM132597510

The 31 December 20X9 trial balance of Central Delivery Service included the following:

                                                          Debit                    Credit

Accounts receivable                     $176,000

Unearned delivery service revenue                             $ 24,000

Prepaid rent                                     64,000

Prepaid insurance                               33,600

Equipment                                           240,000

Accum. depn.-equipment                                                     30,000

Salary expense                                         20,000

Additional data:

a) Depreciation on equipment for 20X9 is $12,000.

b) Delivery services performed but unbilled and uncollected at year end amount to $6,400.

c) Two-thirds of the revenue received in advance has been earned by 31 December.

d) The prepaid rent relates to one-half of a year beginning on 1 October 20X9.

e) The prepaid insurance represents the annual premium on a policy providing coverage starting 1 September 20X9.

f) Since the last payday, employees have earned an additional $2,400 which has not yet been paid or recorded.

Question 1: Prepare the necessary year-end adjusting entries as at 31 December 20X9. (Note: All revenues earned relate to delivery services.)