Prepare adjusting journal entries, as needed, for the following items. (a) The Supplies account shows a balance of $500, but a count of supplies reveals only $200 on hand at year-end. (b) The company initially records the payments of all insurance premiums as prepaid insurance. The unadjusted trial balance at year-end shows a balance of $500 in Prepaid Insurance. A review of insurance policies reveals that $100 of insurance is unexpired. (c) Employees work Monday through Friday, and salaries of $2,500 per week are paid each Friday. The company's year-end falls on Tuesday. (d) At year-end, the company received a utility bill for December's electricity usage of $200 that will be paid in early January.
Prepare
(a) The Supplies account shows a balance of $500, but a count of supplies reveals only $200 on hand at year-end.
(b) The company initially records the payments of all insurance premiums as prepaid insurance. The unadjusted
(c) Employees work Monday through Friday, and salaries of $2,500 per week are paid each Friday. The company's year-end falls on Tuesday.
(d) At year-end, the company received a utility bill for December's electricity usage of $200 that will be paid in early January.
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