Prepare adjusting journal entries for the dog training business for the period ended December 31.

December 31	One month of the 12-month, $3,600 insurance policy is expired by December 31. This leaves $3,300 not yet expired.
December 31	A physical count of supplies on December 31 shows that only $1,200 of supplies remain of the $2,000 supplies purchased.
December 31	The $6,000 of equipment purchased at the beginning of December has a useful life of 5 years and will be worth nothing at the end of 5 years (60 months). The business uses straight-line depreciation to allocate the $6,000 net cost over 60 months. On December 31, 1 month of depreciation must be recorded.
December 31	The business agreed on December 23 to provide a 4-week training service to a customer for a fixed fee of $1,600 paid in advance. By December 31, the business has provided 1 of the 4 weeks of services and earned one-fourth of the fee. No revenue is yet recorded.

Journal Entry worksheet

1) One month of the 12-month, $3,600 insurance policy is expired by December 31. This leaves $3,300 not yet expired.

2) A physical count of supplies on December 31 shows that only $1,200 of supplies remain of the $2,000 supplies purchased.

3) The $6,000 of equipment purchased at the beginning of December has a useful life of 5 years and will be worth nothing at the end of 5 years (60 months). The business uses straight-line depreciation to allocate the $6,000 net cost over 60 months. On December 31, 1 month of depreciation must be recorded.

4) The business agreed on December 23 to provide a 4-week training service to a customer for a fixed fee of $1,600 paid in advance. By December 31, the business has provided 1 of the 4 weeks of services and earned one-fourth of the fee. No revenue is yet recorded.