Exercise 3-1 Preparing adjusting entries LO P1, P2, P3 Depreciation on the company's equipment for the year is computed to be $14,000. The Prepaid Insurance account had a $6,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $800 of unexpired insurance coverage remains. The Office Supplies account had a $440 debit balance at the beginning of the year; and $2,680 of office supplies were purchased during the year. The December 31 physical count showed $519 of supplies available. One-fifth of the work related to $10,000 of cash received in advance was performed this period. The Prepaid Rent account had a $5,300 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $4,500 of prepaid rent had expired. Wage expenses of $5,000 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended (date of) December 31 for each of these separate situations.