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1. An audit of inventory shows that $3,000 of office supplies were used. 2. Chalky Co had purchased office furniture. The office furniture was purchased

1. An audit of inventory shows that $3,000 of office supplies were used. 2. Chalky Co had purchased office furniture. The office furniture was purchased for $36,000. Chalky Co. expects the furniture to last 6 years and value $0 at the end of its useful You notice that monthly depreciation expense for 2020 has not been recorded. They will need to book 9 months of depreciation expense in September. 3. An insurance policy was purchased for $4,000. The policy term was for April 2020 - March 2021. 6 months of expense needs to be booked. 4. Star Company paid $18,000 for chalkboard installations last month. The service was completed in September. 5. Chalky Co. provided installation service to Red Barn Inc for $36,000. Chalky Co. issued an invoice to Red Barn Inc on September 21st with payment terms 5/10 net 30. 6. Pretty Office Cleaning, a cleaning service, provided services to Chalky Co. during September An invoice was received for the amount of $8,000 due in 30 days. 7. Chalky Co. conducted a physical count of their inventory and realized there was a shrinkage. The value of current inventory was $18,000. 8. Based on previous experience, Chalky Co estimates that 2% of its accounts receivable balance will go uncollected. 9. Chalky Co. aquired BD Company, smaller company, in 2019 for $150,000. At the time of acquisition, BD Company had net assets of $100,000. The current value of BD Company is $125,000

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