Prepare any necessary adjusting or correcting entries called for by the following situations.Assume that no entries have been made regarding the situation other than those specifically described.
Consider each situation separately.
a.Equipment is repaired and maintained by an outside maintenance company on an annual fee basis,payable in advance.The $2,400 fee was paid in advance on September 1 (for 12 months beginning September 1)and was charged to Repair and Maintenance Expense.What adjustment is necessary on December 31?
b.On January 1,$10,500 of machinery was purchased.$500 cash was paid down and a 3-month,12% note payable was signed for the balance.The January 1 transaction was properly recorded.Prepare the adjustment for the interest as of January 31.
c.On February 1,$1,200 was paid in advance to the landlord for three month's rent.The tenant debited Prepaid Rent for $1,200 on February 1.What adjustment is necessary as of February 28?

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The Answer of Prepare any necessary adjusting or correcting entries called for by the following situations.Assume that no entries have been made regarding the situation other than those specifically described.
Consider each situation separately.
a.Equipment is repaired and maintained by an outside maintenance company on an annual fee basis,payable in advance.The $2,400 fee was paid in advance on September 1 (for 12 months beginning September 1)and was charged to Repair and Maintenance Expense.What adjustment is necessary on December 31?
b.On January 1,$10,500 of machinery was purchased.$500 cash was paid down and a 3-month,12% note payable was signed for the balance.The January 1 transaction was properly recorded.Prepare the adjustment for the interest as of January 31.
c.On February 1,$1,200 was paid in advance to the landlord for three month's rent.The tenant debited Prepaid Rent for $1,200 on February 1.What adjustment is necessary as of February 28?

Prepare Any Necessary Adjusting or Correcting Entries Called for by the Following