View Policies Show Attempt History Current Attempt in Progress 1. Lily Corporation began operations on January 2. Its year end is December 31, and it adjusts its accounts annually. Selected transactions for the current year follow: On January 2. purchased supplies for $3,700 cash. A physical count at December 31 revealed that $730 of supplies were still on hand. 2 Purchased a vehicle for $46,200 on April 1, paying $4,100 cash and signing a $42.100 bank loan for the balance. The vehicle is estimated to have a useful life of 5 years and the company uses straight-line depreciation. The bank loan has an interestof 3%. 3 Purchased a $3,300, one-year insurance policy for cash on August 1. The policy came into effect on that date. Received a $1.630 advance cash payment from a client on November 9 for services to be performed in the future. As at December 31, half of these services had been completed On December 1, the company rented additional office space for a six-month period starting on December 1 for $1,120 each month. It paid rent for the months of December and January in advance on this date. 4. 5. (a) Your answer is correct For each of the above situations, prepare the journal entry for the original transaction (list all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) For each of the above situations, prepare the journal entry for the original transaction. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Sr Date Account Titles and Explanation Debit no. Credit 1. Jan. 20 Supplies 3700 Cash 2. Apr. 1 Vehicles 16200 Bank Loant Payable 3. Aug. 17 Prepaid Insurance 3300 4 Nov.9. 1630 Defend Revenue 5. Dec 19 Prepaid Rent 3210 (b) For each of the above situations, prepare any adjusting entry required at December 31. (Record journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round all amounts to the nearest dollar) Sr no. Date Account Titles and Explanation Debit Credit 1 Dec. 31 2. Dec. 31 (Record entry for depreciation expenses.) 2. Dec 31 (Cash paid for interest expense.) 3. Dec. 31 Dec. 31 Sr no. Date Account Titles and Explanation Debit Credit 1 Dec. 31 o AC 2. Dec. 31 Q AC (Record entry for depreciation expenses.) QU AC Dec. 31 2 Qu Ace (Cash paid for interest expense) 3. Dec 31 Qu Dec. 31 Qu Acco Vies Acco Dec. 31 5
