The following data relate to the accounts of Scacco Company. Prepare the necessary adjusting journal entries indicated by each item for the year ended December 31, 2020.
A three-year insurance policy was purchased on March 1, 2020. The $360 insurance premium was fully paid on that date and a debit to Prepaid Insurance was recorded.
Unpaid salaries and wages at year end amount to $650.
Scacco Company holds bonds of another corporation that pay interest at a rate of $900 per year. These bonds were purchased on August 1, 2020, and the first interest payment will be received on August 1, 2021.