Reference no: EM132995753

The following data relate to the accounts of Sunland Company.

a. Unpaid salaries and wages at year end amount to $720.

b. Sunland Company owns bonds of another corporation that pay annual interest of $1,880. These bonds were purchased on April 1, 2020, and the next interest payment will be received on April 1, 2021.

c. A two-year insurance policy was purchased on June 1, 2020. The $3,360 insurance premium was paid on that date and was debited to Prepaid Insurance.

d. Service Revenue was credited for $1,680 on June 1, 2020. The amount represents a one-year advance payment for services to be performed by Sunland Company through May 31, 2021.

e. The Supplies account shows a balance of $2,000 on December 31, 2020. A physical count of the supplies on hand at this date reveals a total of $1,000 available.

Problem 1: Prepare the necessary adjusting journal entries indicated by each item for the year ended December 31, 2020.