Question
Exercise 1 Given the following accounts related to LAMA company during 2015 Dr Cr Office Supplies 15,000 Prepaid Insurance 25,000 Equipment 60,000 Accounts Payable 5,000
Exercise 1
Given the following accounts related to LAMA company during 2015
|
| Dr | Cr |
| Office Supplies | 15,000 |
|
| Prepaid Insurance | 25,000 |
|
| Equipment | 60,000 |
|
| Accounts Payable |
| 5,000 |
| Salaries Payable |
| |
| Unearned Revenue |
| 25,000 |
| Capital |
| 70,000 |
Additional information
The prepaid insurance policy is a cost of 2 years and is purchased on July 1, 2015.
The amount of supplies on hand at December 31 is $6000
The equipment purchased in January 1, 2015 and has a useful life of 5 years and salvage value of 10,000
The services performed from the unearned revenue is $8,000
Required
Prepare the appropriate adjusting entries at Dec. 31, 2015
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
10th edition
9780077515904, 007802529X, 77515900, 978-0078025297
