a. On July 1, Lopez Company paid $2,400 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. b. Zim Company has a Supplies account balance of $7,400 at the beginning of the year. During the year, it purchases $3,200 of supplies. As of December 31, a physical count of supplies shows $1,400 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a. On July 1, Lopez Company paid $2,400 for six months of
insurance coverage. No adjustments have been made to
the Prepaid Insurance account, and it is now December
31.
b. Zim Company has a Supplies account balance of $7,40O
at the beginning of the year. During the year, it
purchases $3,200 of supplies. As of December 31, a
physical count of supplies shows $1,400 of supplies
available.
Prepare the year-end adjusting entries to reflect expiration
of the insurance and correctly report the balance of the
Supplies account and the Supplies Expense account as of
December 31.
View transaction list
Journal entry worksheet
2
Record year-end adjusting entry to reflect expiration of the insurance as of
December 31.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
a.
Record entry
Clear entry
View genera
Transcribed Image Text:a. On July 1, Lopez Company paid $2,400 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. b. Zim Company has a Supplies account balance of $7,40O at the beginning of the year. During the year, it purchases $3,200 of supplies. As of December 31, a physical count of supplies shows $1,400 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31. View transaction list Journal entry worksheet 2 Record year-end adjusting entry to reflect expiration of the insurance as of December 31. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View genera
For each separate case, record the necessary adjusting
entry.
a. On July 1, Lopez Company paid $2,400 for six months of
insurance coverage. No adjustments have been made to
the Prepaid Insurance account, and it is now December
31.
b. Zim Company has a Supplies account balance of $7,400
at the beginning of the year. During the year, it
purchases $3,200 of supplies. As of December 31, a
physical count of supplies shows $1,400 of supplies
available.
Prepare the year-end adjusting entries to reflect expiration
of the insurance and correctly report the balance of the
Supplies account and the Supplies Expense account as of
December 31.
View transaction list
Journal entry worksheet
< 1
2
Record the supplies used during the year.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
b.
Record entry
Clear entry
View genera
Transcribed Image Text:For each separate case, record the necessary adjusting entry. a. On July 1, Lopez Company paid $2,400 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. b. Zim Company has a Supplies account balance of $7,400 at the beginning of the year. During the year, it purchases $3,200 of supplies. As of December 31, a physical count of supplies shows $1,400 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31. View transaction list Journal entry worksheet < 1 2 Record the supplies used during the year. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Record entry Clear entry View genera
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