Question
1. The $4,736 balance in Supplies Expense represents supplies purchased in January. At June 30, $1,920 of supplies are on hand. 2. The note payable
1. The $4,736 balance in Supplies Expense represents supplies purchased in January. At June 30, $1,920 of supplies are on hand. 2. The note payable was issued on February 1. It is a 9%, 6-month note. Interest is paid when the note matures. 3. The balance in Insurance Expense is the premium on a 1-year policy, dated March 1, 2022. 4. Service Revenue is credited when cash is received from customers. At June 30, services revenue of $1,664 remains unearned. 5. Revenue for services performed but unrecorded at June 30 totals $2,560. 6. Depreciation is $2,904 per year.
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