The information necessary for preparing the 2012 year-end adjusting entries for Bearcat Personal Training Academy appears below. Bearcat’s fiscal year-end is December 31.
| a. | Depreciation on the equipment for the year is $6,000. |
| b. | Salaries earned (but not paid) from December 16 through December 31, 2012, are $3,000. |
| c. |
On March 1, 2012, Bearcat lends an employee $15,000. The employee signs a note requiring principal and interest at 8% to be paid on February 28, 2013. |
| d. |
On April 1, 2012, Bearcat pays an insurance company $12,000 for a two-year fire insurance policy. The entire $12,000 is debited to Prepaid Insurance at the time of the purchase. |
| e. | Bearcat uses $1,200 of supplies in 2012. |
| f. |
A customer pays Bearcat $2,400 on October 31, 2012, for three months of personal training to begin November 1, 2012. Bearcat credits Unearned Revenue at the time of cash receipt. |
| g. |
On December 1, 2012, Bearcat pays $4,500 rent to the owner of the building. The payment represents rent for December 2012 through February 2013, at $1,500 per month. Prepaid Rent is debited at the time of the payment. |
| Required: |
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Record the necessary adjusting entries at December 31, 2012. No prior adjustments have been made during 2012. (Do not round your intermediate calculations. Omit the “$” sign in your response.) |
| Event | General Journal | Debit | Credit |
| a. | |||
| b. | |||
| c. | |||
| d. | |||
| e. | |||
| f. | |||
| g. | |||