Reversing Entries On December 31, 2007 Adams Company made the following adjusting entries for its annual accounting period:

Depreciation Expense

2,400

Accumulated Depreciation

2,400

To record depreciation on buildings.

Interest Receivable

500

Interest Revenue

500

To record interest on note receivable due January 28, 2008.

Rent Expense

400

Prepaid Rent

400

To record expired prepaid rent.

Interest Expense

620

Interest Payable

620

To record interest on note payable due March 16, 2008.

Required

Prepare whatever reversing entries are appropriate.