When the accounts of Novak Inc. are examined, the adjusting data listed below are uncovered on December the end of an annual fiscal period.
The prepaid insurance account shows a debit of $ representing the cost of a year fire insurance policy dated August of the current year.
On November Rent Revenue was credited for $ representing revenue from a subrental for a month period beginning on that date.
Purchase of advertising materials for $ during the year was recorded in the Advertising Expense account. On December advertising materials of $ are on hand.
Interest of $ has accrued on notes payable. The interest will be paid in January of the next year.
a The adjusting entry for each item.
No Account Titles and Explanation
b The reversing entry for each item where appropriate.
No Account Titles and Explanation
Debit
Credit
