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Ricardo Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses

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Ricardo Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. Prepare Journal entries for items a through d and the adjusting entries as of its December 31 period-end for items e through g a. Supplies are purchased on December 1 for $3,100 cash b. The company prepaid its Insurance premiums for $2,090 cash on December 2 c. On December 15, the company receives an advance payment of $24,000 cash from a customer for remodeling work d. On December 28, the company receives $4.800 cash from another customer for remodeling work to be performed in January e. A physical count on December 31 indicates that the company has $1,950 of supplies available 4. An analysis of insurance policies in effect on December 31 shows that $450 of insurance coverage had expired g. As of December 31, only one remodeling project has been worked on and completed. The $5.680 fee for this project had been received in advance and recorded as remodeling fees earned. View transaction list Journal entry worksheet The company prepaid its insurance premiums for $2,090 cash on December 2. Note: Enter debits before credits. General Journal Transaction b. Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet On December 28, the company receives $4,800 cash from another customer for remodeling work to be performed in January. Note: Enter debits before credits. Transaction General Journal Debit Credit d. Record entry Clear entry View general journal View transaction list Journal entry worksheet A physical count on December 31 indicates that the company has $1,950 of supplies available. Prepare the required adjusting entry, if any. Note: Enter debits before credits. Transaction General Journal Debit Credit e Record entry Clear entry View general journal View transaction list Journal entry worksheet

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