Sunkan Company prepares monthly financial statements. Below are listed some selected accounts and their balances on the
Question:
Sunkan Company prepares monthly financial statements. Below are listed some selected accounts and their balances on the September 30 trial balance before any adjustments have been made for the month of September.
SUNKAN COMPANY
Trial Balance (Selected Accounts)
Table format typing if possible
September 30, 2017
_____________________________________________________________________________
Debit Credit
Supplies .................................................................................................. $ 2,700
Prepaid Insurance .................................................................................. 4,800
Equipment ............................................................................................... 16,200
Accumulated DepreciationEquipment ................................................ $ 1,000
Unearned Rent Revenue ........................................................................ 1,200
(Note: Debit column does not equal credit column because this is a partial listing of selected account balances.)
An analysis of the account balances by the company's accountant provided the following additional information:
- A physical count of office supplies revealed $1,000 on hand on September 30.
- A two-year life insurance policy was purchased on September 1 for $4,800.
- Office equipment depreciates $3,000 per year.
- The amount of rent received in advance that remains unearned at September 30 is $300.
Instructions:
Using the information given, prepare the adjusting entries that should be made by Sunkan Company on September 30.
Remember: you are doing adjusting entries for a one month period - the month of September.