Chapter 3 The Adjusting Process (11)

1. On December 1, the Company prepaid rent at a discount for $900 for the month of December.

2. On December 10, Dana delivered the appraisal report to management at Sothebys Auction House and provided a bill for $10,000 for services performed in appraising the lot and writing the report.

3. On December 15, John Paul noted that services had been completed in early December for the $2,500 payment received in November as a deposit in advance.

4. On December 30, the Company received the $10,000 check from Sothebys auction house for services performed.

5. On December 31, John Paul expensed the expired insurance coverage as of December 31 which was provided by the policy purchased on November 1 for $1,200. The policy covers a one-year period.

6. On December 31, John determined that supplies costing $125 had been used in December.

7. On December 31, John accrued the expense for the $900 in rent paid in advance on December 1.

8. On December 31, John estimated that the working table and two chairs purchased for $1,000 total had an estimated useful life of 5 years and recorded depreciation on the assets for November and December.

9. On December 31, Pauls Appraisal Services owes $450 for two days of work performed by employees. The employees will be paid on January 10.

10. Depreciation for Computer equipment for the year was determined to be $250.

11. Unbilled fees for services performed in December are $12,900.