E3-10 For each of these six independent situations, journalize the adjusting entry and the related transaction (either before or after it):
1. Dec. 1 - Business receives $2,000 for a 10-month service contract.
Dec. 31 - Year-end adjusting entry needed to update the balance in the account.
2. Mar. 31 - Work performed but not yet billed to customers for the month, $900.
Apr. 21 - Received payment for the work that was completed.
3. Jun. 15 - Purchased $3,500 of office supplies on account.
Dec. 31 - A count of supplies shows that only $1,700 worth is left at year end, so the balance in the account needs to be updated.
4. Apr. 21 - Received payment for the work that was completed.
Jun. 15 - Purchased $3,500 of office supplies on account.
Dec. 31 - A count of supplies shows that only $1,700 worth is left at year end, so the balance in the account needs to be updated.
5. Feb. 2 - Business paid a $450 deposit for the last month's rental of a copier on a 10-month contract.
Nov. 30 - The rental period for the copier ended, so the balance in the prepaid account must be updated.
6. Jun. 1 - Purchased a truck for $39,900 (cash) with an expected useful life of 7 years.
Dec. 31 - Year-end adjusting entry needed to record amortization.