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:

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.