ACCT20 Assignment #2 Question 1 Bokhari Company prepares annual financial statements. Below are listed some selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the year ended September 30, 2014. BOKHARI COMPANY Trial Balance (Selected Accounts) September 30, 2014 Office Supplies Prepaid Insurance. Office Equipment... Accumulated Depreciation Office Equipment.. Unearned Rent Revenue. Dobit Credit S 2,700 5,400 16,200 S 6,480 1.200 (Note: Debit column does not equal credit column because this is a partial listing of selected account balances.) An analysis of the account balances by the company's accountant provided the following additional information: 1. A physical count of office supplies revealed $1,200 on hand on September 30. 2. A one-year life insurance policy was purchased on June 1 for $5,400. 3. Office equipment is expected to have a life of 5 years. Depreciation is recorded monthly. 4. The amount of rent received in advance that remains unearned at September 30 is $500. Instructions Prepare the adjusting entries that should be made by Bokhari Company on September 30. Question 2 The lodger of Casper Consulting at January 31, 2014 includes the following selected accounts: Prepaid insurance... Supplies Building Land Notes payable. Unearned service revenue. Debil S 3,600 Credit 1.800 100,000 60,000 $90.000 8,000 Casper's accountant is inexperienced, and he would like your help in preparing the company's yearend January 31, 2014 financial statements. Casper follows ASPE and makes adjusting entries only at year end. The accountant has provided you with the following information: 1. A one-year insurance policy costing $3,600 was purchased on January 1, 2014. At that time the full amount was debited to prepaid insurance. 2. A physical inventory count on January 31, 2014 revealed $800 in supplies were still remaining 3. Land and building were purchased on February 1, 2013 at a cost of $160,000. The building has an expected useful life of 20 years. The purchase was financed by paying $70,000 in cash and the balance on a 2-year, 8% note payable. Interest on the note is due at maturity. 4. Unearned service revenue related to a client retainer paid on January 15, 2014. On January 31, 2014, one-quarter of this amount has been earned. Instructions Prepare the adjusting journal entries required at January 31, 2014