Video, Inc., had the following separate situations occur during the year. The company's accountant is preparing the annual financial statements at December 31 and has asked you to prepare the adjusting entries for each situation using the journal entry form.
a. On June 1, Video, Inc. paid the annual lease amount on its warehouse space. The annual lease is $6,600 and was recorded by debiting Prepaid Rent and crediting Cash. No adjusting entries have been prepared since June 1.
b. The Unearned Revenue account has an unadjusted balance of $4,000 consisting of gift cards sold to customers. Redeemed gift cards that have not yet been recorded total $1,200.
c. The company has not yet received a bill for utilities nor paid for the month of December. The expense is estimated to be $840.
d. On December 1, Video, Inc., received $1,500 cash from a customer related to a special order. The special order was delivered to the customer on December 29 but no entry has been made to record the delivery.
e. At December 31, employee wages of $2,300 have been incurred but not paid or recorded.
f. At December 31, $440 of interest has been incurred, but not yet paid or recorded.
g. Unrecorded depreciation on equipment is $2,800.

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The Answer of Video, Inc., had the following separate situations occur during the year. The company's accountant is preparing the annual financial statements at December 31 and has asked you to prepare the adjusting entries for each situation using the journal entry form.
a. On June 1, Video, Inc. paid the annual lease amount on its warehouse space. The annual lease is $6,600 and was recorded by debiting Prepaid Rent and crediting Cash. No adjusting entries have been prepared since June 1.
b. The Unearned Revenue account has an unadjusted balance of $4,000 consisting of gift cards sold to customers. Redeemed gift cards that have not yet been recorded total $1,200.
c. The company has not yet received a bill for utilities nor paid for the month of December. The expense is estimated to be $840.
d. On December 1, Video, Inc., received $1,500 cash from a customer related to a special order. The special order was delivered to the customer on December 29 but no entry has been made to record the delivery.
e. At December 31, employee wages of $2,300 have been incurred but not paid or recorded.
f. At December 31, $440 of interest has been incurred, but not yet paid or recorded.
g. Unrecorded depreciation on equipment is $2,800.