Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

im missing the accounting equation numbers !!! Fes Company is making adjusting journal entries for the year ended December 31, 2013. In developing information for

image text in transcribedimage text in transcribedim missing the accounting equation numbers !!!

Fes Company is making adjusting journal entries for the year ended December 31, 2013. In developing information for the adjusting journal entries, you learned the following: a. A three-year insurance premium of $7,200 was paid on January 1, 2013, for coverage beginning on that date. As of December 31, 2013, the unadjusted balances were $7,200 for Prepaid Insurance and $0 for Insurance Expense. b. At December 31, 2013, you obtained the following data relating to supplies. $15,000 72,000 Unadjusted balance in Supplies on December 31, 2013 Unadjusted balance in Supplies Expense on December 31, 2013 Supplies on hand, counted on December 31, 2013 10,000 Required: 1. Of the $7,200 paid for insurance, what amount should be reported on the 2013 income statement as Insurance Expense? What amount should be reported on the December 31, 2013, balance sheet as Prepaid Insurance? $ 2,400 Insurance Expense $ Prepaid Insurance 4,800 What amount should be reported on the 2013 income statement as Supplies Expense? What amount should be reported on the December 31, 2013, balance sheet as Supplies? Supplies Expense 77,000 Supplies 10,000 Indicate the accounting equation effects of the adjustment required for (a) insurance and (b) supplies. (Enter all amounts as positive values.) Transaction Assets Liabilities Stockholders' Equity Insurance Expense (3,600) Prepaid Insurance a Supplies (5,000) Supplies Expense b

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical Guide To Auditing SAP Systems

Authors: Martin Metz, Sebastian Mayer

1st Edition

3960126409, 978-3960126409

More Books

Students also viewed these Accounting questions

Question

7. Identify four antecedents that influence intercultural contact.

Answered: 1 week ago

Question

5. Describe the relationship between history and identity.

Answered: 1 week ago