"For each separate case, record the necessary adjusting entry. On July 1, Lopez Company paid $1,200 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. Prepare the year-end adjusting entry to reflect expiration of the insurance as of December 31. Zim Company has a Supplies account balance of $5,000 at the beginning of the year. During the year, it purchases $2,000 of supplies. As of December 31, a physical count of supplies shows $800 of supplies available. Prepare the adjusting journal entry to 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
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"For each separate case, record the necessary adjusting entry.
On July 1, Lopez Company paid $1,200 for six months of insurance coverage. No adjustments
have been made to the Prepaid Insurance account, and it is now December 31. Prepare the
year-end adjusting entry to reflect expiration of the insurance as of December 31.
Zim Company has a Supplies account balance of $5,000 at the beginning of the year. During the
year, it purchases $2,000 of supplies. As of December 31, a physical count of supplies shows
$800 of supplies available. Prepare the adjusting journal entry to correctly report the balance of
the Supplies account and the Supplies Expense account as of December 31."
Transcribed Image Text:"For each separate case, record the necessary adjusting entry. On July 1, Lopez Company paid $1,200 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. Prepare the year-end adjusting entry to reflect expiration of the insurance as of December 31. Zim Company has a Supplies account balance of $5,000 at the beginning of the year. During the year, it purchases $2,000 of supplies. As of December 31, a physical count of supplies shows $800 of supplies available. Prepare the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31."
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