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Question - Fort Services initially records all prepaid expenses as expenses and all unearned revenues as revenues. Given the following information, prepare the necessary adjusting entries at December 31, 2020, the company's year-end.
1. On January 3, 2020, the company's first day of operations, $2,500 of supplies were purchased. A physical count revealed $700 of supplies still on hand at December 31, 2020.
2. On January 4, 2020, a $15,000 payment for insurance was made to an insurance agency for a 30-month policy.
3. On June 30, 2020, Fort Services received nine months' rent totalling $13,500 in advance from a tenant.
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