My Company had the following transactions during its first month of operations: Dec 2 Purchased $11,000 of furniture on account for the office. Dec 3 Purchased $1,400 of supplies on account. Dec 5 Purchased a one year insurance policy for $2,100. On December 31, the following adjustments must be made: The furniture, which has no salvage value and a 60-month (or 5 year) useful life, needs to be depreciated for ONE MONTH using straight-line depreciation (Hint: Cost Salvage / useful life in months). A physical count shows only $1,000 of supplies remains in the storage closet. One month of the 1-year insurance policy has been used. Prepare adjusting entries required. Prepare adjusting entries requirea.Prepare adjusting cntries required.
My Company had the following transactions during its first month of operations: Dec 2 Purchased $11,000 of furniture on account for the office. Dec 3 Purchased $1,400 of supplies on account. Dec 5 Purchased a one year insurance policy for $2,100. On December 31, the following adjustments must be made: The furniture, which has no salvage value and a 60-month (or 5 year) useful life, needs to be depreciated for ONE MONTH using straight-line depreciation (Hint: Cost Salvage / useful life in months). A physical count shows only $1,000 of supplies remains in the storage closet. One month of the 1-year insurance policy has been used. Prepare adjusting entries required. Prepare adjusting entries requirea.Prepare adjusting cntries required.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:My Company had the following transactions during its first month of operations: Dec 2 Purchased $11,000 of furniture on account for the office. Dec 3 Purchased $1,400 of supplies
on account. Dec 5 Purchased a one year insurance policy for $2,100. On December 31, the following adjustments must be made: The furniture, which has no salvage value and a
60-month (or 5 year) useful life, needs to be depreciated for ONE MONTH using straight-line depreciation (Hint: Cost - Salvage / useful life in months). A physical count shows
only $1,000 of supplies remains in the storage closet. One month of the 1 - year insurance policy has been used. Prepare adjusting entries required. Prepare adjusting entries
requirea.Prepare adjusting cntries required.
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