Enter everything into the journal a. On July 1, Lopez Company paid $2,700 for six months ofinsurance coverage. No adjustments have been made tothe Prepaid Insurance account, and it is now December31.b. Zim Company has a Supplies account balance of $8,000at the beginning of the year. During the year, itpurchases $3,500 of supplies. As of December 31, aphysical count of supplies shows $1,550 of suppliesavailable.Prepare the year-end adjusting entries to reflect expirationof the insurance and correctly report the balance of theSupplies account and the Supplies Expense account as ofDecember 31.View transaction listJournal entry worksheet12Record year-end adjusting entry to reflect expiration of the insurance as ofDecember 31.Note: Enter debits before credits.TransactionGeneral JournalDebitCredita.Record entryClear entryView genera

Name: Enter everything into the journal a. On July 1, Lopez Company paid $2,
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Description: Enter everything into the journal a. On July 1, Lopez Company paid $2,700 for six months ofinsurance coverage. No adjustments have been made tothe Prepaid Insurance account, and it is now December31.b. Zim Company has a Supplies account balance of $8

Answered: a. On July 1, Lopez Company paid $2,700…

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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Enter everything into the journal

a. On July 1, Lopez Company paid $2,700 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 $8,000
at the beginning of the year. During the year, it
purchases $3,500 of supplies. As of December 31, a
physical count of supplies shows $1,550 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 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

Expert Solution

Step 1

>Adjusting entries are recorded, as part of completion of accounting cycle.

>These are made to record adjustments to various Income Statement and Balance Sheet accounts.

>The adjustments are mainly for:

--Deferred Revenue adjustment

--Accrued revenue adjustment

--Prepaid expenses adjustment

--Accrued expense adjustments

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