Q 1 Present, in journal form, the adjustments that would be made on July 31, 2011, the end of the fiscal year, for each of the following.

1. The supplies inventory on August 1, 2010 was 7,350. Supplies costing 20,150 were acquired during the year and charged to the supplies inventory. A count on July 31, 2011 indicated supplies on hand of 8,810.

2. On April 30, a twelve-month, 9% note for 20,000 was received from a customer.

3. On March 1, 12,000 was collected as rent for one year and a nominal account was credited.

Q 2 Record the following transactions of Reed Co. in the desired manner and give the adjusting entry on December 31, 2010. (Two entries for each part.)

1. An insurance policy for two years was acquired on April 1, 2010 for $8,000.

2. Rent of $12,000 for six months for a portion of the building was received on November 1, 2010.