Problem: The following transactions occurred for the Fierro Company.
1. A three-year fire insurance policy was purchased on July 1, 2024, for $15,480. The company debited prepaid insurance for the entire amount at the time of payment.
2. Depreciation on equipment totaled $14,500 for the year.
3. Employee salaries of $21,500 for the month of December will be paid in early January 2025.
4. On November 1, 2024, the company borrowed $290,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2025.
5. On December 1, 2024, the company received $8,700 in cash from another company that is renting office space in Fierro's building. The payment, representing rent for December, January, and February was credited to deferred rent revenue at the time cash was received.
Required:
Prepare the necessary adjusting entries at December 31, 2024 for each of the above situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.