Dr. Erica Chan, MD owns EC Health Clinic. She prepares annual financial statements and has a December 31, 2023 year-end. On October 1, 2023, Dr. Chan prepaid $5,700 for four months of rent. On November 1, 2023, Dr. Chan prepaid $264 to renew the clinic’s magazine subscriptions. The subscription is for one year. On December 1, 2023, Dr. Chan pays $2,700 for supplies. At the end of the year, $1,800 of supplies had not been used. Required: For the above transactions, record the initial journal entry and the adjusting entry required on December 31, 2023.
Dr. Erica Chan, MD owns EC Health Clinic. She prepares annual financial statements and has a December 31, 2023 year-end. On October 1, 2023, Dr. Chan prepaid $5,700 for four months of rent. On November 1, 2023, Dr. Chan prepaid $264 to renew the clinic’s magazine subscriptions. The subscription is for one year. On December 1, 2023, Dr. Chan pays $2,700 for supplies. At the end of the year, $1,800 of supplies had not been used. Required: For the above transactions, record the initial journal entry and the adjusting entry required on December 31, 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dr. Erica Chan, MD owns EC Health Clinic. She prepares annual financial statements and has a December 31, 2023 year-end.
- On October 1, 2023, Dr. Chan prepaid $5,700 for four months of rent.
- On November 1, 2023, Dr. Chan prepaid $264 to renew the clinic’s magazine subscriptions. The subscription is for one year.
- On December 1, 2023, Dr. Chan pays $2,700 for supplies. At the end of the year, $1,800 of supplies had not been used.
Required:
For the above transactions, record the initial
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