The correct answer should be:

Insurance Expense(dr) $180

Prepaid Insurance $180

TUN You are hired as a new staff accountant for Chalky Co., a reputable chalkboard company, that specializes in selling and installing chalkboards. Your task is to prepare the financial statements for November 30, 2020. 1. When auditing supply inventory, you realized that it only had $250 of office supplies on hand. 2. Depreciation expense is $350 each month. It has not been recorded for November. 3. An insurance policy was purchased for $1,080. The policy term was for October - September 2021. Adjust the insurance accordingly. 4. Star Company paid $3,500 for chalkboard installation at their offices last month. Chalky Co. performed the installation service this month. 5. Chalky Co. provided installation service to Red Barn Inc for $18,000. Chalky Co. issued an invoice to Red Barn Inc who will pay next month. 6. Pretty Office Cleaning, a cleaning service, provided services to Chalky Co. during November.\ An invoice was received for the amount of $5,000 and will be paid next month. 7. Chalky Co. conducted a physical count of their inventory. The value of current inventory was $18,000 Cash Inventory Accounts Receivable Office Supplies Prepaid Insurance Office Furniture Land Accounts Payable Utilities Payable Unearned Revenue Common Stoc Dividends Sales or Service Revenue Cost of Goods Sold Salaries Expenses Rent Expense Utilities Expense Total Chalky Co. Unadjusted Trial Balance November 30, 2020 Account Title MA $ $ LA GA $ $ ta ta ta to $ $ $ $ ta to $ $ $ $ $ Debit Balance 15,000 21,400 1,200 900 1,080 2,800 25,000 3,000 $ $ A LA LA $ $ $ 18,000 2,820 800 600 92,600 $ Credit 900 600 4,200 40,000 46,900 92,600 Date Adj 1 Date Adj 2 Date Adj 3 Date Adj 4 Date Adj 5 Date Adj 6 Chalky Co. Journal Entries November 30,2020 Accounts and Explanation Accounts and Explanation Accounts and Explanation Accounts and Explanation Accounts and Explanation Accounts and Explanation VIN Debit Debit Credit Debit Debit Debit Credit Debit Credit Credit Credit Credit Date Adj 4 Date Adj 5 Date Adj 6 Date Adj 7 Accounts and Explanation Accounts and Explanation Accounts and Explanation Accounts and Explanation Debit Debit Debit Debit Credit Credit Credit Credit Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. $ $ $ $ $ $ $ $ $ $ Cash 15,000 15,000 Accounts Receivable 1,200 1,200 Office Supplies 900 900 Prepaid Insurance 1,080 1,080 Land 25,000 25,000 Chalky Co. General Ledger November 30,2020 Unadj Bal. Bal. $ $ Accounts Payable THIN Utilities Payable $ Unearned Revenue $ 3,000 Common Stock 3,000 $ Dividends $ 900 Unadj Bal. 900 Bal. 600 Unadj Bal. 600 Bal. 4,200 Unadj Bal. 4,200 Bal. 40,000 Unadj Bal. 40,000 Bal. Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. $ $ $ $ $ $ $ $ $ $ Office Supplies 900 900 Prepaid Insurance 1,080 1,080 Land 25,000 25,000 Office Furniture 2,800 2,800 Salary Expense 2,820 2,820 Supplies Expense Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. $ $ $ $ $ $ Unearned Revenue $ Common Stock $ 3,000 Dividends 3,000 $ $ 600 800 $ Sales or Service Revenue $ Rent Expense 800 4,200 Unadj Bal. 4,200 Bal. 40,000 Unadj Bal. Utilities Expense 600 40,000 Bal. 46,900 Unadj Bal. 46,900 Bal. Bal. Bal. Unadj Bal. Bal. Depreciation Expense- Furniture $ $ $ $ Insurance expense Cost of goods sold 18,000 18,000 Bal. Unadj Bal. Bal. Accumulated Depreciation-Furniture $ $ Cleaning expense $ Inventory 21,400 21,400 Bal. Cash Inventory Accounts Receivable Office Supplies Prepaid Insurance Office Furniture Accumulated Depreciation - Office Furniture Land Accounts Payable Utilities Payable Unearned Revenue Common Stock Dividends Sales or Service Revenue Cost of Goods Sold Salaries Expenses Account Title Depreciation Expense - Office Furniture Cleaning Expense Insurance Expense Supplies Expenses Rent Expense Utilities Expense Total Chalky Co. Adjusted Trial Balance November 30,2020 TUN $ Debit Balance $ Credit Revenues: Sales or Service Revenue Cost of goods sold Expenses Expense Rent Expense Cleaning expense Salary Expense Supplies Expense Gross Income: Depreciation Expense- Furniture Insurance expense Total Expenses: Chalky Co. Income Statement November 30,2020 $ $ $ $ $ $ $ Net Income: $ TUN Beginning Balance Net income Dividends Ending Balance, December 31, 2018 Chalky Co. Statement of Owners Equity November 30,2020 $ LA GA $ $ $ TAN Assets Current Assets: Cash Inventory Net Accounts Receivable Office Supplies Prepaid Insurance Property, Plant, and Equipment: Land Intangible Assets: Goodwill Liabilities Current Liabilities: Furniture Less: Accumulated Depreciation-Furniture $ Shareholders' Equity Chalky Co. Balance Sheet November 30,2020 Total Current Assets: Common Stock Accounts Payable Utilities Payable Unearned Revenue Allowance for Warranty Expense Total Property, Plant, and Equipment Total Assets: $ $ $ $ $ Total Current Liabilties: $ $ TA $ $ $ $ Intangible Assets: Goodwill Liabilities Current Liabilities: Shareholders' Equity Total Property, Plant, and Equipment Accounts Payable Utilities Payable Unearned Revenue Allowance for Warranty Expense Common Stock Owner's Equity Treasury Stock Total Assets: Total Current Liabilties: $ Total Shareholders' Equity: Total Shareholders' Equity and Liabilities: $ $ $ $ $ TUN You are hired as a new staff accountant for Chalky Co., a reputable chalkboard company, that specializes in selling and installing chalkboards. Your task is to prepare the financial statements for November 30, 2020. 1. When auditing supply inventory, you realized that it only had $250 of office supplies on hand. 2. Depreciation expense is $350 each month. It has not been recorded for November. 3. An insurance policy was purchased for $1,080. The policy term was for October - September 2021. Adjust the insurance accordingly. 4. Star Company paid $3,500 for chalkboard installation at their offices last month. Chalky Co. performed the installation service this month. 5. Chalky Co. provided installation service to Red Barn Inc for $18,000. Chalky Co. issued an invoice to Red Barn Inc who will pay next month. 6. Pretty Office Cleaning, a cleaning service, provided services to Chalky Co. during November.\ An invoice was received for the amount of $5,000 and will be paid next month. 7. Chalky Co. conducted a physical count of their inventory. The value of current inventory was $18,000 Cash Inventory Accounts Receivable Office Supplies Prepaid Insurance Office Furniture Land Accounts Payable Utilities Payable Unearned Revenue Common Stoc Dividends Sales or Service Revenue Cost of Goods Sold Salaries Expenses Rent Expense Utilities Expense Total Chalky Co. Unadjusted Trial Balance November 30, 2020 Account Title MA $ $ LA GA $ $ ta ta ta to $ $ $ $ ta to $ $ $ $ $ Debit Balance 15,000 21,400 1,200 900 1,080 2,800 25,000 3,000 $ $ A LA LA $ $ $ 18,000 2,820 800 600 92,600 $ Credit 900 600 4,200 40,000 46,900 92,600 Date Adj 1 Date Adj 2 Date Adj 3 Date Adj 4 Date Adj 5 Date Adj 6 Chalky Co. Journal Entries November 30,2020 Accounts and Explanation Accounts and Explanation Accounts and Explanation Accounts and Explanation Accounts and Explanation Accounts and Explanation VIN Debit Debit Credit Debit Debit Debit Credit Debit Credit Credit Credit Credit Date Adj 4 Date Adj 5 Date Adj 6 Date Adj 7 Accounts and Explanation Accounts and Explanation Accounts and Explanation Accounts and Explanation Debit Debit Debit Debit Credit Credit Credit Credit Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. $ $ $ $ $ $ $ $ $ $ Cash 15,000 15,000 Accounts Receivable 1,200 1,200 Office Supplies 900 900 Prepaid Insurance 1,080 1,080 Land 25,000 25,000 Chalky Co. General Ledger November 30,2020 Unadj Bal. Bal. $ $ Accounts Payable THIN Utilities Payable $ Unearned Revenue $ 3,000 Common Stock 3,000 $ Dividends $ 900 Unadj Bal. 900 Bal. 600 Unadj Bal. 600 Bal. 4,200 Unadj Bal. 4,200 Bal. 40,000 Unadj Bal. 40,000 Bal. Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. $ $ $ $ $ $ $ $ $ $ Office Supplies 900 900 Prepaid Insurance 1,080 1,080 Land 25,000 25,000 Office Furniture 2,800 2,800 Salary Expense 2,820 2,820 Supplies Expense Unadj Bal. Bal. Unadj Bal. Bal. Unadj Bal. Bal. $ $ $ $ $ $ Unearned Revenue $ Common Stock $ 3,000 Dividends 3,000 $ $ 600 800 $ Sales or Service Revenue $ Rent Expense 800 4,200 Unadj Bal. 4,200 Bal. 40,000 Unadj Bal. Utilities Expense 600 40,000 Bal. 46,900 Unadj Bal. 46,900 Bal. Bal. Bal. Unadj Bal. Bal. Depreciation Expense- Furniture $ $ $ $ Insurance expense Cost of goods sold 18,000 18,000 Bal. Unadj Bal. Bal. Accumulated Depreciation-Furniture $ $ Cleaning expense $ Inventory 21,400 21,400 Bal. Cash Inventory Accounts Receivable Office Supplies Prepaid Insurance Office Furniture Accumulated Depreciation - Office Furniture Land Accounts Payable Utilities Payable Unearned Revenue Common Stock Dividends Sales or Service Revenue Cost of Goods Sold Salaries Expenses Account Title Depreciation Expense - Office Furniture Cleaning Expense Insurance Expense Supplies Expenses Rent Expense Utilities Expense Total Chalky Co. Adjusted Trial Balance November 30,2020 TUN $ Debit Balance $ Credit Revenues: Sales or Service Revenue Cost of goods sold Expenses Expense Rent Expense Cleaning expense Salary Expense Supplies Expense Gross Income: Depreciation Expense- Furniture Insurance expense Total Expenses: Chalky Co. Income Statement November 30,2020 $ $ $ $ $ $ $ Net Income: $ TUN Beginning Balance Net income Dividends Ending Balance, December 31, 2018 Chalky Co. Statement of Owners Equity November 30,2020 $ LA GA $ $ $ TAN Assets Current Assets: Cash Inventory Net Accounts Receivable Office Supplies Prepaid Insurance Property, Plant, and Equipment: Land Intangible Assets: Goodwill Liabilities Current Liabilities: Furniture Less: Accumulated Depreciation-Furniture $ Shareholders' Equity Chalky Co. Balance Sheet November 30,2020 Total Current Assets: Common Stock Accounts Payable Utilities Payable Unearned Revenue Allowance for Warranty Expense Total Property, Plant, and Equipment Total Assets: $ $ $ $ $ Total Current Liabilties: $ $ TA $ $ $ $ Intangible Assets: Goodwill Liabilities Current Liabilities: Shareholders' Equity Total Property, Plant, and Equipment Accounts Payable Utilities Payable Unearned Revenue Allowance for Warranty Expense Common Stock Owner's Equity Treasury Stock Total Assets: Total Current Liabilties: $ Total Shareholders' Equity: Total Shareholders' Equity and Liabilities: $ $ $ $ $