Question

For each separate case, record the necessary adjusting entry. a. On July 1, Lopez Company paid $2,200 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. b. Zim Company has a Supplies account balance of $7.000 at the beginning of the year. During the year, it purchased $3,000 of supplies. As of December 31, a physical count of supplies shows $1,300 of supplies available. points Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31 View transaction list Journal entry worksheet Record the supplies used during the year. Note: Enter debits before credits < Prey 8 of 18 ! Next >

Answer 1

solution Transcation particulars Debit Gredet 2200 Insurance experse alcor To prepaid Insurance 2200 si 8700 supplees expense alcor I [2000'+ 3000 – 1300] To supplies alc 8700