Question
Basic accounting question Record the following transactions for Zeros Zoo in T-accounts and tell how each affects the accounting equation. The year end for Zeros
Basic accounting question
Record the following transactions for Zeros Zoo in T-accounts and tell how each affects the accounting equation. The year end for Zeros Zoo is December 31.
A. On March 1, Zeros Zoo borrowed $15,000 from the bank at 6%, both interest and principal duein one year.
B. On May 1, the Zoo purchased a two-year insurance policy beginning immediately, and paid$6,750 cash.
C. On July 1, the Zoo prepaid its rent for three years, paying $5,400 in cash.
D. On November 1, the company purchased $475 worth of supplies in cash. It had started the yearwith $375 worth of supplies on hand.
E. Over the course of the year, Zeros Zoo earned $54,500 in cash sales.
Part 2:
Use the information from answers above to make the necessary adjustments to Zeros Zoos accounts in preparation for the year-end financial statements. At year end, there were $175 worth of supplies on hand.
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