Question

Help For each separate case, record the necessary adjusting entry. a. On July 1. Lopez Company paid $1,200 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 $5,000 at the beginning of the year. During the year, it purchased $2,000 of supplies. As of December 31, a physical count of supplies shows $800 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies accoun and the Supplies Expense account as of December 31. View transaction list Journal entry worksheet < 1 2 Record year-end adjusting entry to reflect expiration of the insurance as of December 31. Note: Enter debits before credits < Prey 3 of 5 : Score answer > O search E

Answer 1

Adjusting Entry for Requirement a: Journal Entries Date Account Title and Explaination Post. Debit $ Credit $ Ref. Dec.31 $ 1,200.00 $ 1,200.00 Insurance Expense Prepaid Insurance (To record adjusting entry for Prepaid Insurance expired)

Adjusting Entry for Requirement b: Journal Entries Date Account Title and Explaination Post. Ref. Debit $ Credit $ $ 6,200.00 S 6,200.00 Dec.31 Supplies Expense ($5000 + $2000 - $800) Supplies (To record adjusting entry for Consumption of Supplies or Supplies Expense)