Prepare the necessary adjusting entries for the following accounts at year-end: Accrued Interest Expense, Office Supplies Used, Depreciation Expense, Unearned Fees Earned, and Prepaid Rent Expired.

Here are the adjusting entries: 1. Accrued Interest Expense l r r Interest Expense & \520 & \\ Interest Payable & & \520 \\ (To record accrued interest expense) & & 2. Office Supplies Used Office Supplies Used = Unadjusted Balance - Unused Supplies Office Supplies Used = \4,020 - \560 = \3,460 l r r Office Supplies Expense & \3,460 & \\ Office Supplies & & \3,460 \\ (To record office supplies used) & & 3. Depreciation Expense l r r Depreciation Expense & \1,020 & \\ Accumulated Depreciation - Office Equipment & & \1,020 \\ (To record depreciation for the year) & & 4. Unearned Fees Earned Unearned Fees Earned = Unearned Fees Balance × Portion Earned Unearned Fees Earned = \2,800 × 0.50 = \1,400 l r r Unearned Fees & \1,400 & \\ Fees Revenue & & \1,400 \\ (To record unearned fees earned) & & 5. Prepaid Rent Expired Monthly Rent Expense = Prepaid Rent Balance ÷ Number of Months Monthly Rent Expense = \2,100 ÷ 3 = \700 l r r Rent Expense & \700 & \\ Prepaid Rent & & \700 \\ (To record rent expired for June) & & 6. Prepaid Insurance Expired Insurance Expired = Prepaid Insurance Balance × Percentage Expired Insurance Expired = \2,730 × 0.80 = \2,184 l r r Insurance Expense & \2,184 & \\ Prepaid Insurance & & \2,184 \\ (To record insurance expired) & & 7. Accrued Salaries Expense l r r Salaries Expense & \1,660 & \\ Salaries Payable & & \1,660 \\ (To record accrued salaries expense) & & 8. Accrued Telephone Expense l r r Telephone Expense & \670 & \\ Telephone Account Payable & & \$670 \\ (To record accrued telephone expense) & &