Reference no: EM132784066

Question - Jenny W. runs a local florist. She reports the following transactions for December and has employed you to prepare the end-of-year adjusting entries needed at December 31. Narrations are required.

1. On December 1 the business borrowed $15 000 at a 4% per annum interest rate. The loan, and all accrued interest, is due in 3 months.

2. The business estimates that electricity and water used during December, for which bills will be received in January, amount to $1 000.

3. Prepaid insurance expired during the year, 6 000.

4. Supplies consumed during the year amounted to 10 000.

5. Revenue earned but not received, $ 8 000.

6. Depreciation on the building for the year is $ 9 000.

7. The telephone of $200 has been paid in advance and has been debited to rent expense.