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.

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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