Question
The following is a partial list of financial statement items from the records of Tex Inc. at December 31, 2018. Prepaid rent 3,600 Prepaid insurance
The following is a partial list of financial statement items from the records of Tex Inc. at December 31, 2018.
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Prepaid rent 3,600
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Prepaid insurance 600
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Supplies 300
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Equipment 11,000
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Notes Payable 5,000
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Salaries expense 1,000
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Unearned service revenues 400
Required: There are five adjustments that need to be made before the financial statements for the year ended December 31, 2018 can be prepared. Record each adjusting entry in the General Journal. Show all your computations.
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The equipment, purchased on May 1, 2018, has an estimated useful life of 5 years, and salvage value of $1,000.
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The 12-months insurance policy was purchased on June 1, 2018.
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The accounting records show that one-half of the fees collected in advance from a customer, has now been earned.
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The prepaid-rent payment was made on April 1, 2018. The rent payment is for 12 months beginning on the date of payment.
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A physical count on December 31, 2018 revealed $50 of supplies remained on hand.
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