Acct 284 SIChapter 41. The following are the transactions for Sky Blue Corporation.A. Collected $1,020 rent for the period December 1, 2008, to February 28, 2009, which wascredited to Unearned rent revenue on December 1, 2008.B. Paid $2,760 for a two-year insurance premium on December 1, 2008; debited Prepaidinsurance for that amount.C. Used a machine purchased on December 1, 2008 for $26,400. The company estimates annualdepreciation of $2,640.For each of the transactions, give the accounting equation effects of the adjustments required atthe end of the month on December 31, 2008. (Indicate the direction of the effect by selecting "+"for increase, "-" for decrease, "NE" for no effect.)2. The following are the transactions for the Sky Blue Corporation.A. Collected $1,860 rent for the period December 1, 2008, to February 28, 2009, which wascredited to Unearned rent revenue on December 1, 2008.B. Paid $2,424 for a two-year insurance premium on December 1, 2008; debited Prepaid insurancefor that amountC. Used a machine purchased on December 1, 2008 for $52,200. The company estimates annualdepreciation of $5,220.Prepare the adjusting journal entries required on December 31,2008. (Omit the "$" sign in yourresponse.)3．The following are the transactions for the Sky Blue Corporation.A. Received a $300 utility bill for electricity usage in December to be paid in January 2009.B. Owed wages to 15 employees who worked 5 days at $190 each per day at the end of December.The company will pay employees at the end of the first week of January 2009.C. On December 1, 2008, loaned money to an employee who agreed to repay the loan in one yearalong with $2,400 for one full year of interest.For each of the transactions, give the accounting equation effects of the adjustments required atthe end of the month on December 31, 2008. (indicate + for increase, – for decrease, and NE forno effect.)4. The following are the transactions for the Sky Blue Corporation.A. Received a $2,080 utility bill for electricity usage in December to be paid in January 2009.B. Owed wages to 9 employees who worked 4 days at $185 each per day at the end of December.The company will pay employees at the end of the first week of January 2009.C. On December 1, 2008, loaned money to an employee who agreed to repay the loan in one yearalong with $1,560 for one full year of interest.5. At December 31, the unadjusted trial balance of H&R Tacks reports Equipment of $42,700 andzero balances in Accumulated Depreciation and Depreciation Expense. Depreciation for the periodis estimated to be $5,800.Prepare the adjusting journal entry on December 31. (Omit the "$" sign in your response.)6. At December 31, the unadjusted trial balance of H&R Tacks reports Prepaid Insurance of$4,800 and Insurance Expense of $0. The insurance was purchased on July 1 and providescoverage for 30 months.Prepare the adjusting journal entry on December 31. (Omit the "$" sign in your response.)7. Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second yearof operations ending December 31, 2008. Account Titles Debit CreditCash $ 4,200 Accounts receivable 1,100 Prepaid insurance 660 Machinery 8,300 Accumulated depreciation $ 0Accounts payable 780Contributed capital 7,900Retained earnings 540Sales revenue 8,800Cost of goods sold expense 2,660 Wages expense 1,100 Totals $ 18,020 $ 18,020Other data not yet recorded at December 31, 2008:a. Insurance expired during 2008, $370.b. Depreciation expense for 2008, $510.c. Wages payable, $810.d. Income tax expense, $830.Using the above adjusted balances, prepare the closing journal entry for 2008.(Omit the "$" sign inyour
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