Chapter 3 - Handouts Each adjusting entry has either a debit to a account, or a credit to a ADDITIONAL ADJUSTING ENTRIES ONLY - PRACTICE Prepare the following adjusting entries for December 31,2017. Assume that no prior adjustments have been made during the year. The supplies account showed a beginning balance of $2,321. Purchases of supplies during the year were $1,500. The amount of supplies used during the year was $1,221. The prepaid insurance account shows a balance of $12,000. The $12,000 represents a one-year policy purchased April 1. Estimated depreciation for office equipment is $1,500. The company calculated that as of December 31 , it has earned $800 on a $4,000 contract that would be completed and billed in

Each adjusting entry has either a debit to a account, or a credit to a account. ADDITIONAL ADJUSTING ENTRIES ONLY - PRACTICE Prepare the following adjusting entries for December 31,2017. Assume that no prior adjustments have been made during the year. The supplies account showed a beginning balance of $2,321. Purchases of supplies during the year were $1,500. The amount of supplies used during the year was $1,221. The prepaid insurance account shows a balance of $12,000. The $12,000 represents a one-year policy purchased April 1. Estimated depreciation for office equipment is $1,500. The company calculated that as of December 31 , it has earned $800 on a $4,000 contract that would be completed and billed in January. The company, which has a five-day workweek pays salaries of $20,000 every Friday. Assume that January 1 falls on Wednesday. The company received $24,000 on December 1 for a two-year service contract. Work on the job began immediately. The company prepaid $9,000 for one year's rent on October 1