Question
Q1- Ledger accounts of a company on September 30, 2020 include the following accounts before adjusting entries have been recorded. Trial Balance (partial listing of
Q1- Ledger accounts of a company on September 30, 2020 include the following accounts before adjusting entries have been recorded.
Trial Balance (partial listing of selected accounts)
September 30, 2020
Debit Credit
Supplies ................................................................................ $ 2,700
Prepaid Insurance .................................................................. 4,800
Equipment ............................................................................. 16,200
Accumulated DepreciationEquipment ................................... $ 1,000
Unearned Rent Revenue .............................................................................................. 1,200
An analysis of the account balances provided the following information:
- A physical count of office supplies revealed $1,000 still on hand on September 30, 2020.
- The prepaid insurance is a two-year fire insurance policy that was purchased on September 1st, 2020.
- Office equipment depreciates $3,000 per year.
- The unearned rent revenue covers 10 months starting from September 1st, 2020.
Required: Using the information above, record the adjusting entries that should be made by this company on September 30.
Answer:
Account titles | Debit | Credit |
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