For each separate case, record the necessary adjusting entry. a. On July 1, Lopez Company paid $3,000 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 $8,600 at the beginning of the year. During the year, it purchases $3,800 of supplies. As of December 31, a physical count of supplies shows $1,700 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.
For each separate case, record the necessary adjusting entry. a. On July 1, Lopez Company paid $3,000 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 $8,600 at the beginning of the year. During the year, it purchases $3,800 of supplies. As of December 31, a physical count of supplies shows $1,700 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do a and b
Transcribed Image Text:For each separate case, record the necessary adjusting
entry.
a. On July 1, Lopez Company paid $3,000 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 $8,600
at the beginning of the year. During the year, it
purchases $3,800 of supplies. As of December 31, a
physical count of supplies shows $1,700 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
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education