Prepare journal entries on December 31 to record the following unrelated year-end adjustments. TheSupplies account on January 1 had a balance of $500. During the year the company bought $2,500 of supplies which was debited to the Supplies account. A count of the supplies on hand on December 31 showed there was $400 of supplies left. A machine costing $5,000 was purchased two years ago. When it was bought, it had an estimated life of 5 years. On September 1, a property owner received 6 month’s rent in advance from a tenant whose rent is $550 per month. The $3,300 was credited to the Unearned Rent account.
Prepare journal entries on December 31 to record the following unrelated year-end adjustments. TheSupplies account on January 1 had a balance of $500. During the year the company bought $2,500 of supplies which was debited to the Supplies account. A count of the supplies on hand on December 31 showed there was $400 of supplies left. A machine costing $5,000 was purchased two years ago. When it was bought, it had an estimated life of 5 years. On September 1, a property owner received 6 month’s rent in advance from a tenant whose rent is $550 per month. The $3,300 was credited to the Unearned Rent account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prepare
- TheSupplies account on January 1 had a balance of $500. During the year the company bought $2,500 of supplies which was debited to the Supplies account. A count of the supplies on hand on December 31 showed there was $400 of supplies left.
- A machine costing $5,000 was purchased two years ago. When it was bought, it had an estimated life of 5 years.
- On September 1, a property owner received 6 month’s rent in advance from a tenant whose rent is $550 per month. The $3,300 was credited to the Unearned Rent account.
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