Refer to E4-6.
E4-6
Fes Company is making adjusting journal entries for the year ended December 31, 2013. In developing information for the adjusting journal entries, you learned the following:
a. A two-year insurance premium of $7,200 was paid on January 1, 2013, for coverage beginning on that date. As of December 31, 2013, the unadjusted balances were $7,200 for Prepaid Insurance and $0 for Insurance Expense.
b. At December 31, 2013, you obtained the following data relating to supplies.
Unadjusted balance in Supplies on December 31, 2013................ $15,000
Unadjusted balance in Supplies Expense on December 31, 2013...... 72,000
Supplies on hand, counted on December 31, 2013....................... 10,000
Required:
Prepare adjusting journal entries at December 31, 2013, for (a) insurance, and (b) supplies.