Reference no: EM132578943

UAE Company prepares monthly financial statements. Below are listed some selected accounts as September 30 trial balance.

UAE COMPANY

Trial Balance (Selected Accounts)

September 30, 2018

                                                                                                                                     Debit                      Credit

Office Supplies........................................................................................ $ 2,700

Prepaid Insurance.................................................................................. 4,200

Office Equipment................................................................................... 16,200

Accumulated Depreciation-Office Equipment..................................                                        $1,000

Unearned Rent Revenue........................................................................                                1,200

(Note: Debit column does not equal credit column because this is a partial listing of selected account balances)

An analysis of the account balances by the company's accountant provided the following additional information:

1. A physical count of office supplies revealed $1,100 on hand on September 30.

2. A year life insurance policy was purchased on June 1 for $4,800.

3. The amount of rent received in advance that remains unearned at September 30 is $500.

Instructions

Problem 1: Using the above additional information, prepare the adjusting entries that should be made by UAE Company on September 30.