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McGowan Company must make three adjusting entries on December 31, 20X1. Supplies used, $9,800 (supplies totaling $15,600 were purchased on December 1, 20X1, and debited
McGowan Company must make three adjusting entries on December 31, 20X1.
- Supplies used, $9,800 (supplies totaling $15,600 were purchased on December 1, 20X1, and debited to the Supplies account).
- Expired insurance, $7,000; on December 1, 20X1, the firm paid $42,000 for six months insurance coverage in advance and debited Prepaid Insurance for this amount.
- Depreciation expense for equipment, $4,600.
Required:
Prepare the journal entries for these adjustments and post the entries to the general ledger accounts.
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