Description

Required: complete the following Exercises:

Exercise $3-3$

Exercise $3-4$

Exercise $3-5$

Exercise $3-3$ Preparing adjusting entries $($annual$)$ prepaid expense LO$4$

Dr$.$ Erica Chan, MD owns EC Health Clinic. She prepares annual financial statements and has a December $31,2017$ year$-$end.

On October $1,2017,$ Dr$.$ Chan prepaid $$8,000$ for four months of rent.

On November $1,2017,$ Dr$.$ Chan prepaid $$480$ to renew the clinic's magazine subscriptions. The subscription is for one year.

On December $1,2017,$ Dr$.$ Chan paid $$3,000$ for supplies. At the end of the year, $$2,000$ of supplies had not been used.

Required:

For each transaction, record the initial journal entry and the adjusting entry required on December $31,2017.$