Part A: ADJUSTING ENTRIES (9 pts)

1. Lane Company purchased a $55,000 new truck on January 1 that will be depreciated at a rate of $9,000 per YEAR. Prepare the Adjusting entry for depreciation on January 31 if the company closes its books MONTHLY:

GENERAL JOURNAL J1

Date Account Title DEBIT CREDIT

Jan 31

2. On June 3, XYZ Painting Company received $1,800 cash in advance for painting to be done over the summer months. At the end of June, XYZ had completed one-half of the work. Prepare the appropriate Adjusting entry on June 30, assuming XYZ closes its book MONTHLY.

GENERAL JOURNAL J1

Date Account Title DEBIT CREDIT

June 30

3. Jacob Company paid $6,000 for 12 months of insurance on January 1. If Jacob Company closes its books QUARTERLY (for Jan, Feb, Mar) on March 31, prepare the appropriate Adjusting entry in the ______

GENERAL JOURNAL J1

Date Account Title DEBIT CREDIT

Mar 31