Reference no: EM133182595

Question - LA Company has a fiscal year ending on December 31, 2015. The following information has been gathered so that the company could prepare adjustments:

1. The company had $4,000 of office supplies on hand on January 1, 2015, purchased $6,300 of supplies during the year, and had $1,200 of supplies were on hand on December 31, 2015.

2. On October 1, 2015, a three-year insurance premium of $27,000 was paid for coverage beginning on that date. The payment was recorded in the Prepaid Insurance account.

3. A delivery vehicle was purchased for $30,000 on April 1, 2015. The vehicle has a 5-year useful life and no salvage value. Depreciation is estimated to be $6,000 per year or $500 per month.

4. The company rents some of its unused factory space to a small manufacturer. The lease required an advance payment of $18,000 for six months' rent on November 1, 2015, and the lease term began that day. The advance payment received from the tenant was recorded as Unearned Revenue when it was received.

5. Employees work five days per week and are paid $75,000 every other Friday; each pay period includes ten week days. The last payday during the company's fiscal year was properly recorded on Friday, December 26, 2015. The employees worked on December 29, 30, and 31, 2015; they will not be paid for that work until Friday, January 9, 2016.

Required - Prepare the adjusting entry that is required for each of the situations described above. Assume that you are adjusting the related accounts as of the end of the year and that no adjustments have been made since the dates provided above.