Prepare general journal entries on December 31, 2018 to record the following unrelated year-end adjustments. (a) On December 2, 2018, $6,200 of supplies were purchased and recorded as an asset. A count revealed $1,000 still on hand at December 31, 2018. (b) Services performed during December but not yet billed to customers totaled $5,000. (c) Depreciation of equipment is recorded using the straight-line method over 10 years. The equipment was purchased on December 1, 2018 for $300,000, and has no residual value at the end of its useful life. (d) Prepaid insurance expired during the month of December was $2,500.

Prepare general journal entries on December 31, 2018 to record the following unrelated year-end adjustments. (a) On December 2, 2018, $6,200 of supplies were purchased and recorded as an asset. A count revealed $1,000 still on hand at December 31, 2018. (b) Services performed during December but not yet billed to customers totaled $5,000. (c) Depreciation of equipment is recorded using the straight-line method over 10 years. The equipment was purchased on December 1, 2018 for $300,000, and has no residual value at the end of its useful life. (d) Prepaid insurance expired during the month of December was $2,500.

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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