Determine the necessary end-of-June adjustments for Brown Company. 1. On June 1, 2016, Brown Company, a new

Question:

Determine the necessary end-of-June adjustments for Brown Company.
1. On June 1, 2016, Brown Company, a new firm, paid $7,000 rent in advance for a seven-month period. The $7,000 was debited to the Prepaid Rent account.
2. On June 1, 2016, the firm bought supplies for $7,950. The $7,950 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $3,300 were on hand.
3. On June 1, 2016, the firm bought equipment costing $64,800. The equipment has an expected useful life of 9 years and no . The firm will use the straight-line method of depreciation.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...