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Assessing Financial Statement Effects of Transactions and AdjustmentsSelected accounts of Piotroski Properties, a real estate management firm, are shown below as of January 31, before any accounts have been adjusted.DebitsCreditsPrepaid Insurance$19,980Supplies5,790Office Equipment17,856Unearned Rent Revenue$15,750Salaries Expense9,300Rent Revenue45,000
Piotroski Properties prepares monthly financial statements. Using the following information, adjust the accounts as necessary on January 31 using the financial statements effect template.(a) Prepaid insurance represents a three-year premium paid on January 1.(b) Supplies of $850 were still available on January 31.(c) Office equipment is expected to last eight years (or 96 months).(d) The unearned rent revenue represents six months of rent received in advance on January 1.(e) Salaries of $1470 have been earned by employees but yet not recorded as of January 31.
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