Question

A+T Williamson Company is making adjustment entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant, the following

a. A two-year insurance premium of $4800 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance n October 1.

b. At December 31 of the current year, the following data relating to Shopping Supplies were obtained from the records and supporting documents.

Shipping supplies on hand, January 1 of the year current year                          $13,000

Purchases of shipping supplies during the current year                                      $75,000

Skipping supplies on hand, counted on December 31 of the current year      $ 20,000

Required

1. Record the adjusting entry for insurance at December 31 of the current year. (do not record intermediate calculations. If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

Journal Entry Worksheet

Note: Enter Debits before credits.

Transaction                 General Journal               Debit               Credit   

Answer 1

Adjusting entry

Transaction	General journal	Debit	Credit
1	Insurance expense (4800/24*3)	600
	Prepaid insurance		600
2	Shipping supplies expense (13000+75000-20000)	68000
	Shipping supplies		68000