Adjusting Entries
the Information Shown Below Relates to Flower Corporation

question 31

Essay

Adjusting entries
The information shown below relates to Flower Corporation. At December 31, 2020, Flower's general ledger shows the following balances:
$$\begin{array} { l l l l } \text { Prepaid lease ............................ } & \mathbf { \$ 7 , 0 0 0 } & \text { Debit } \\\text { Prepaid insurance ...................... } & \mathbf { \$ 1 2 0 0 } & \text { Debit } \\\text { Unearmed revenue } . . \ldots \ldots \ldots \ldots \ldots \ldots . \ldots \ldots & \mathbf { \$ 8 4 , 0 0 0 } & \text { Credit }\end{array}$$ In addition, the following information is available:
1. The entire amount shown as prepaid lease has expired.
2. One-third of the amount shown as prepaid insurance has expired.
3. Half of the amount shown as unearned revenue has now been earned.
Instructions
Prepare all adjusting entries that are required at December 31, 2020.