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.

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Definitions:

Written Business Communication

The process of exchanging information and ideas in a business setting through written documents, such as emails, reports, and memos.

Letters

Brief written messages sent to customers and other recipients outside an organization.

Customers

Individuals or entities that purchase goods or services from a business.

Topic

The overall subject of a message.