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XYZ Company prepares monthly financial statements. In the tabular summary below are selected accounts and their balances on September 30 before any adjustments have been made for the month of September. Stockholders Assets Liabilities + Equity Accum. Unearned Prepaid Depr. - Rent Supplies + Ins. + Equip Equip. Rev. Revenue - Expense al 1,500 + 3,600 + 16,200 - 1.000 1,200 analysis of the account balances by the company's accountant provided the following additional information: A physical count of office supplies revealed $500 on hand on September 30. a two-year life insurance policy was purchased on September 1 for $3,600. Office equipment depreciates $1.200 per year. ninr unearned at September 30 is $200.

XYZ Company prepares monthly financial statements. In the tabular summary below are selected accounts and their balances on September 30 before any adjustments have been made for the month of September. Stockholders Assets Liabilities + Equity Accum. Unearned Prepaid Depr. - Rent Supplies + Ins. + Equip Equip. Rev. Revenue - Expense al 1,500 + 3,600 + 16,200 - 1.000 1,200 analysis of the account balances by the company's accountant provided the following additional information: A physical count of office supplies revealed $500 on hand on September 30. a two-year life insurance policy was purchased on September 1 for $3,600. Office equipment depreciates $1.200 per year. ninr unearned at September 30 is $200.

FINANCIAL ACCOUNTING
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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XYZ Company prepares monthly financial statements. In the tabular summary below are selected accounts and their balances on September 30 before any adjustments have been made for the month of September. Stockholders' Assets Liabilities + Equity Accum. Unearned Prepaid Depr. - Rent Supplies + Ins. + Equip Equip. Rev. Revenue - Expense Bal 1,500 + 3,600 + 16,200 - 1,000 1,200 An analysis of the account balances by the company's accountant provided the following additional information: 1. A physical count of office supplies revealéd $500 on hand on September 30. 2. A two-year life insurance policy was purchased on September 1 for $3,600. 3. Office equipment depreciates $1,200 per year. 4. The amount of rent received in advance that remains unearned at September 30 is $200. Using the information given above, consider the adjustments that should be made by XYZ Company on September 30 and answer the following questions. What amount of Depreciation Expense is recorded for office equipment for the month of September? O $200 $1,100 O $1.000 None of the responses provided. $100
Transcribed Image Text:XYZ Company prepares monthly financial statements. In the tabular summary below are selected accounts and their balances on September 30 before any adjustments have been made for the month of September. Stockholders' Assets Liabilities + Equity Accum. Unearned Prepaid Depr. - Rent Supplies + Ins. + Equip Equip. Rev. Revenue - Expense Bal 1,500 + 3,600 + 16,200 - 1,000 1,200 An analysis of the account balances by the company's accountant provided the following additional information: 1. A physical count of office supplies revealéd $500 on hand on September 30. 2. A two-year life insurance policy was purchased on September 1 for $3,600. 3. Office equipment depreciates $1,200 per year. 4. The amount of rent received in advance that remains unearned at September 30 is $200. Using the information given above, consider the adjustments that should be made by XYZ Company on September 30 and answer the following questions. What amount of Depreciation Expense is recorded for office equipment for the month of September? O $200 $1,100 O $1.000 None of the responses provided. $100
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