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a) Originally, Organico had paid for 24 months of insurance at the beginning of March 1, 2020 ($2,400 was paid on March 1 for insurance
a) Originally, Organico had paid for 24 months of insurance at the beginning of March 1, 2020 ($2,400 was paid on March 1 for insurance for 24 months). Post the appropriate adjustment to ensure the balance or prepaid insurance is corect as at March 31, 2020. | ||||||||||||
b) During the month of March, Organico used $1,050 of the supplies they purchased in their operations. | ||||||||||||
c) Equipment originally purchased on March 1, 2020 for 6,000 has a useful life of 2.5 years with no salvage value (no residual value). | ||||||||||||
d) $250 of the unearned revenue was earned throughout March as Organico provided food services to the customer who had paid in advance. | ||||||||||||
e) The interest on the bank loan that Organico borrowed from the bank on March 1, 2020 was calculated to be $35 for the month of March. | ||||||||||||
f) An employee had to work overtime in the month of March for 7 hours at a rate of $20 per hour. They were not for this as at March 31, 2020. | ||||||||||||
g) Organico provided food services to a customer in March on account (the customer has not paid yet as at March 31, 2020). This has not been recorded in the unadjusted trial balance. |
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