Calculate the expense for the year and the prepayment or accrual for the given items, and write the adjusting entries.

1. 1 · Find the amount for the period. Monthly amount × months in the period.
2. 2 · Compare with the amount paid or received. Excess paid = prepaid; shortfall = accrued. Excess received = unearned.
3. 3 · Write the adjusting entry. Dr and Cr with amounts.
4. 4 · Show the income statement figure. The expense or income for the period.
5. 5 · Show the SFP figure. A current asset or a current liability.

Scoring tip: Write the months used as a fraction (e.g. 6/12); it makes the working easy to mark.