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Natsu Company's annual accounting period ends on October 31, 2017. The following information con- cerns the adjusting entries that need to be recorded as of
Natsu Company's annual accounting period ends on October 31, 2017. The following information con- cerns the adjusting entries that need to be recorded as of that date. (Entries can draw from the following partial chart of accounts: Cash; Rent Receivable: Office Supplies; Prepaid Insurance: Building; Accumulated Depreciation-Building: Salaries Payable; Unearned Rent; Rent Earned; Salaries Expense; Office Supplies Expense; Insurance Expense; Depreciation Expense-Building.) a. The Office Supplies account started the fiscal year with a $600 balance. During the fiscal year, the company purchased supplies for $4,570, which was added to the Office Supplies account. The sup- plies available at October 31, 2017, totaled $800. b. An analysis of the company's insurance policies provided the following facts. Months of Coverage Policy Date of Purchase Cost 2 April 1, 2016 April 1, 2017 August 1, 2017 24 36 12 $6,000 7,200 1,320 Natsu Company's annual accounting period ends on October 31, 2017. The following information con- cerns the adjusting entries that need to be recorded as of that date. (Entries can draw from the following partial chart of accounts: Cash; Rent Receivable: Office Supplies; Prepaid Insurance: Building; Accumulated Depreciation-Building: Salaries Payable; Unearned Rent; Rent Earned; Salaries Expense; Office Supplies Expense; Insurance Expense; Depreciation Expense-Building.) a. The Office Supplies account started the fiscal year with a $600 balance. During the fiscal year, the company purchased supplies for $4,570, which was added to the Office Supplies account. The sup- plies available at October 31, 2017, totaled $800. b. An analysis of the company's insurance policies provided the following facts. Months of Coverage Policy Date of Purchase Cost 2 April 1, 2016 April 1, 2017 August 1, 2017 24 36 12 $6,000 7,200 1,320
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