Part 3:Olympic Sports Wear furnishes the following information:1.On January 1, 2006, the supplies account has $7,200 balance2.During the year, supplies are purchased for $5,0003.On December 31, 2005, the supplies account has a closing balance of $2,200.Instruction:Prepare the adjusting journal entry.Part 4:Olympic Sports Wear furnishes the following information:1.An insurance policy is purchased on December 1, 2005 for three months (December through February). The premium amount for the quarterly period is $1,500.2.The clerk debited the Prepaid Insurance account for $1500.3.At the end of the account year (on March 31, 2006), only one month cost $500 has expired. The value of the unexpired insurance is $1,000.Instruction:Prepare the adjusting journal entries for the Prepaid Insurance Account.
Santiago 3…General Journal Page No. 1DateDescriptionPost Ref. DebitCredit2006Marc 31Insurance Expenses$500March 31Prepaid Insurance $500Part 5:Olympic Sports Wear estimates its Annual Federal Income tax as $10,000. It has paid the tax in four installments of $2,500 each. However, at the end of the year, the actual tax amount is $11,200.Therefore, the company needs to pay $1,200 to the government.Instruction:Prepare the adjusting journal entry.…General Journal Page No. 1DateDescriptionPost Ref. DebitCredit20-Dec. 31Annual Federal IncomeTax Expense$1,200Dec. 31Annual Federal IncomeTax Payable$1,200