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ABC Company is preparing for its year end at June 30, 2019. Note, that prepaid expenses are initially recorded in asset accounts, and that fees
ABC Company is preparing for its year end at June 30, 2019. Note, that prepaid expenses are initially recorded in asset accounts, and that fees collected in advance of work preformed are initially recorded as liabilities. Using the information below, prepare the June 30, 2019 year end adjusting journal entries. Be sure to include dates. No explanations needed. Round to 2 decimal places. Account Debit $ Credit $ Prepaid Insurance Office Supplies Notes Payable 12,000 950 10,000 a) A photocopier (office equipment) costing $5,000 was purchased on April 1, 2019 for cash. It will be used by the business for 4 years (48 months) and is estimated to have a salvage value of $1,000 at the end of the 4 years. Record the depreciation expense for the year ended June 30, 2019. The company uses the straight-line depreciation method. b) The balance in Prepaid Insurance represents 12 months of insurance effective January 1, 2019. c) The Office Supplies were counted on June 30, 2019 and revealed that $500 remained unused. d) The utility bill for $50 was received but was unpaid at year end. e) On April 1, 2019 the business signed a long-term notes payable
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