q1q2q3q4q5q68/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 2/21.Award: 1 out of 1.00 pointExercise 3-2 Classifying adjusting entries LO C3In the blank space beside each adjusting entry, enter the letter of the explanation A through F that mostclosely describes the entry. A. To record this period’s depreciation expense.B. To record accrued salaries expense.C. To record this period’s use of a prepaid expense.D. To record accrued interest revenue.E. To record accrued interest expense.F. To record the earning of previously unearned income. EInterest Expense 2,208Interest Payable 2,208CInsurance Expense 3,180Prepaid Insurance 3,180FUnearned Professional Fees 19,250Professional Fees Earned 19,250DInterest Receivable 3,300Interest Revenue 3,300ADepreciation Expense 38,217Accumulated Depreciation 38,217BSalaries Expense 13,280Salaries Payable 13,280ReferencesWorksheet Exercise 3-2Classifying adjustingentries LO C3Learning Objective: 03-C3 Identify thetypes of adjustments and their purpose.8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 1/12.Award: 1 out of 1.00 pointScore: 8.13/10 Points 81.30 %Exercise 3-4 Determining cost flows through accounts LO C1, A1, P1Determine the missing amounts in each of these four separate situations a through d. a b c dSupplies available—prior year-end $ 400 $ 1,200 $ 1,260 $ 2,288Supplies purchased during the current year 2,800 6,500 8,490  3,000Total supplies available 3,200 7,700 9,750 5,288Supplies available—current year-end 650 6,5001,350 700Supplies expense for the current year2,5501,200 8,400 4,588ReferencesWorksheet Learning Objective: 03-A1 Explain howaccounting adjustmentslink to financialstatements.Learning Objective: 03-P1 Prepare and explainadjusting entries.Exercise 3-4Determining costflows throughaccounts LO C1,A1, P1Learning Objective: 03-C1 Explain theimportance of periodicreporting and the timeperiod assumption.8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 2/23.Award: 1 out of 1.00 pointExercise 3-5 Adjusting and paying accrued expenses LO A1, P1 a. On April 1, the company retained an attorney for a flat monthly fee of $3,500. Payment for April legalservices was made by the company on May 12. b. A $900,000 note payable requires 12% annual interest, or $9,000 to be paid at the 20th day of eachmonth. The interest was last paid on April 20 and the next payment is due on May 20. As of April 30,$3,000 of interest expense has accrued. c. Total weekly salaries expense for all employees is $10,000. This amount is paid at the end of the dayon Friday of each five-day workweek. April 30 falls on Tuesday of this year, which means that theemployees had worked two days since the last payday. The next payday is May 3. The above three separate situations require adjusting journal entries to prepare financial statements as ofApril 30. For each situation, present both the April 30 adjusting entry and the subsequent entry during Mayto record the payment of the accrued expenses. (Use 360 days a year. Do not round intermediatecalculations.) NoDateGeneral JournalDebitCredit1Apr 30Legal fees expense3,500Legal fees payable3,5002May 12Legal fees payable3,500Cash3,5003Apr 30Interest expense3,000Interest payable3,0004May 20Interest expense6,000Interest payable3,000Cash9,0005Apr 30Salaries expense4,000Salaries payable 4,000 6May 03Salaries expense6,000Salaries payable4,000Cash10,000ReferencesWorksheet Learning Objective: 03-A1Explain how accountingadjustments link tofinancial statements.Exercise 3-5Adjusting andpaying accruedexpenses LO A1,P1Learning Objective: 03-P1Prepare and explainadjusting entries.8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 1/24.Award: 1 out of 1.00 pointScore: 8.13/10 Points 81.30 %Exercise 3-6 Preparing adjusting entries LO P1a. Depreciation on the company’s equipment for 2015 is computed to be $18,000.b. The Prepaid Insurance account had a $6,000 debit balance at December 31, 2015, before adjusting forthe costs of any expired coverage. An analysis of the company’s insurance policies showed that $1,100of unexpired insurance coverage remains.c. The Office Supplies account had a $700 debit balance on December 31, 2014; and $3,480 of officesupplies were purchased during the year. The December 31, 2015, physical count showed $300 ofsupplies available.d. Two-thirds of the work related to $15,000 of cash received in advance was performed this period.e. The Prepaid Insurance account had a $6,800 debit balance at December 31, 2015, before adjusting forthe costs of any expired coverage. An analysis of insurance policies showed that $5,800 of coveragehad expired.f. Wage expenses of $3,200 have been incurred but are not paid as of December 31, 2015. Prepare adjusting journal entries for the year ended (date of) December 31, 2015, for each of theseseparate situations. Assume that prepaid expenses are initially recorded in asset accounts. Also assumethat fees collected in advance of work are initially recorded as liabilities. NoTransactionGeneral JournalDebitCredit1a.Depreciation expense—Equipment18,000Accumulated depreciation—Equipment18,0002b.Insurance expense4,900Prepaid insurance4,9003c.Office supplies expense 3,880 Office supplies3,8804d.Unearned fee revenue10,000Fee revenue10,0005e.Insurance expense 5,800 Prepaid insurance5,8006f.Wages expense3,200Wages payable3,200ReferencesWorksheet Exercise 3-6 Preparingadjusting entries LO P1Learning Objective: 03-P1 Prepare and explainadjusting entries.8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 2/28/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 2/25.Award: 1 out of 1.00 pointExercise 3-7 Preparing adjusting entries LO P1a. One-third of the work related to $15,000 cash received in advance is performed this period.b. Wages of $8,000 are earned by workers but not paid as of December 31, 2015.c. Depreciation on the company’s equipment for 2015 is $18,000.d. The Office Supplies account had a $240 debit balance on December