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30.Depreciation Expense is reported on the balance sheet as an addition to the related asset.
31. A company pays $36,000 for twelve month's rent on October 1. The adjusting entry on December 31 is
debit Rent Expense, $9,000 and credit Prepaid Rent, $9,000.
32. A company pays $360 for a yearly trade magazine on August 1. The adjusting entry on December 31 is
debit Unearned Subscription Revenue, $150 and credit Subscription Revenue, $150.
33. A company depreciates its equipment $500 a year. The adjusting entry for December 31 is debit
Depreciation Expense, $500 and credit Equipment, $500.
34. A company pays an employee $3,000 for a five day work week, Monday - Friday. The adjusting entry on
December 31, which is a Wednesday, is debit Wages Expense, $1,800 and credit Wages Payable, $1,800.
35. A company pays $6,500 for two season tickets on September 1. If $2,500 is earned by December 31, the
adjusting entry made at that time is debit Cash, $2,500 and credit Ticket Revenue, $2,500.
36. A company realizes that the last two day's revenue for the month was billed but not recorded. The
adjusting entry on December 31 is debit Accounts Receivable and credit Fees Earned.
37. At year-end, the balance in the prepaid insurance account, prior to any adjustments, is $6,000. The
amount of the journal entry required to record insurance expense will be $4,000 if the amount of
unexpired insurance applicable to future periods is $2,000.