Question
Hammond, Inc.'s general ledger includes these selected accounts on March 31, 2018, before adjusting entries are prepared: Prepaid rent $ 3,600 Supplies 1,800 Equipment 24,000
Hammond, Inc.'s general ledger includes these selected accounts on March 31, 2018, before adjusting entries are prepared:
Prepaid rent $ 3,600
Supplies 1,800
Equipment 24,000
Accumulated depreciationequipment 5,750
Just answer these questions from the information given above thanks please read carefully :)
1. Three months of rent ($1,200 per month) were paid in advance on March 1.
2. Supplies of $1,800 were purchased on March 2 for cash. A count determined that supplies on
hand total $800 on March 31.
3. The equipment was purchased on April 1, 2016, for cash, and is estimated to have a useful life
of eight years. Hammond uses straight-line depreciation.
For each of the above three items, do the following:
(a) Prepare the original transaction journal entry.
(b) Prepare the adjusting journal entries required at March 31, 2018, assuming entries are
made monthly.
(c) Set up T accounts (you can omit the Cash account), enter any opening balances, post the
transaction and adjusting journal entries prepared in (a) and (b), and check your work.
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