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Please help me solve this full exercise and try to post in the right way that the answer will not be partially hidden. Thank you!
Please help me solve this full exercise and try to post in the right way that the answer will not be partially hidden. Thank you! The following information for Kance Company is available on July 31, 2020, the end of a monthly accounting period. 1. Kance Company purchased a 2-year insurance policy on April 1, 2020, and debited Prepaid Insurance for $5,600. 2. On June 1, 2020, a tenant in an apartment building owned by Kance Company paid $6,800, which represents six months' rent in advance. The amount received was credited to the Uneared Rent account. 3. On July 1, 2020, the balance in the Office Supplies account was $300. During July, office supplies costing $650 were purchased. A physical count of office supplies at July 31 revealed that there was $280 still on hand. 4. On March 31, 2020, Kance Company purchased a delivery van for $80,000. It is estimated that the annual depreciation will be $9,000. Instructions: For each situation given indicate for Kance Company for the month of July (1) the type of adjustment (prepaid expense, unearned revenue, accrued revenue, accrued expense); (2) the status of the accounts before adjustment (overstated or understated); (3) Prepare the necessary adjusting journal entries
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