Question

AL All of the transactions of AMNI Inc. for the year have been journalized and posted. The following information has been gathered for the adjustment process as of December 31, 2016: 1. The Supplies account shows a balance of $1,200. A count of supplies revealed $300 on hand. 2. The $2,400 premium relating to a one-year insurance policy was paid on October 1, 2016 covering the one-year period beginning October 1, 2016. 3. The company's equipment, which was purchased last year, depreciates at a rate of $6,000 per year. 4. On September 30, 2016, a customer paid $10,000 in advance for services; as of December 31, 2016, services in the amount of $7,000 had been performed for this customer. 5. Employees are paid $5,000 on Fridays for the 5-day work week, which ends on that Friday. However, December 31, 2016 falls on a Thursday. The employees will not be paid for the work they performed from Monday through Thursday for the last week of the year until 2017 Required: (Please show calculations on the form

Answer 1

Statement showing Computations
Particulars	Amount
1)
Supplies expense Dr	900.00
To Supplies		900.00
(1200 - 300)
2)
Insurance expense Dr	600.00
To prepaid insurance		600.00
(2400/12*3)
3)
Depreciation Expense Dr	6,000.00
To Accumulated depreciation - Equipment		6,000.00
4)
revenue received in advance dr	7,000.00
To Service revenue		7,000.00
5)
Salaries and wages ExpenseDR	4,000.00
To Salariesand wages payable		4,000.00
(5000/5*4)