ADJUSTING AND RECLASSIFYING ENTIRES
1. Office supplies have a balance of $2,400. An inventory at 12/31 shows $1,700 of supplies on hand.
2. There are two insurance accounts in the trial balance, prepaid insurance-$9,200 and Insurance Expense $2,800. Unexpired insurance at the statement date is $3,000.
3. All rent receipts ($25,000) were credited to rent income. At the end of the year, $5,000 of rentals are unearned.
4. The allowance for uncollectibles has a credit balance of $6,000. An aging schedule shows estimated uncollectibles of $14,000.
5. The balance in A/P is $122,400. Included in this amount is $10,400 of advance deposits made by Brian Co. on future purchases.
6. The ledger shows interest receivable of $3,200 at the beginning of the year. All interest collections have been credited to interest revenue. At December 31 of the current year, accrued interest receivable totals $3,800.
7. A/R has a balance of $118,400. This balance is net of customers with credit balances of $15,000.
8. Bonds payable has a balance of $550,000. Bonds maturing within the next year total $50,000.
Required: Journalize the adjusting and reclassifying entries. Identify the adjustments by number and the reclassifications by letter.