E3-17 At Natasha Company, prepayments are debited to expense when paid, and unearned adjusting entries. revenues are
Question:
E3-17 At Natasha Company, prepayments are debited to expense when paid, and unearned adjusting entries. revenues are credited to revenue when received. During January of the current year, the follow-
(SO 8) ing transactions occurred.
Jan. 2 Paid $1,800 for fire insurance protection for the year.
10 Paid $1,700 for supplies.
15 Received $6,100 for services to be performed in the future.
On January 31, it is determined that $2,500 of the services fees have been earned and that there are $800 of supplies on hand.
Instructions
(a) Journalize and post the January transactions. (UseT accounts.)
(b) Journalize and post the adjusting entries at January 31.
(c) Determine the ending balance in each of the accounts.
Step by Step Answer:
Financial Accounting
ISBN: 9780470128848
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso