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1 7 points eBook a. Depreciation on the company's equipment for the year is computed to be $12,000. b. The Prepaid Insurance account had
1 7 points eBook a. Depreciation on the company's equipment for the year is computed to be $12,000. b. The Prepaid Insurance account had a $9,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $770 of unexpired insurance coverage remains. c. The Supplies account had a $270 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. The December 31 physical count showed $319 of supplies available. d. One-third of the work related to $15,000 of cash received in advance was performed this period. e. The Prepaid Rent account had a $4,900 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $4,130 of prepaid rent had expired. f. Wage expenses of $3,000 have been incurred but are not paid as of December 31.
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