Question

Determine which of the following transactions may require adjustments.(Check all that apply) O a one-month premium on an insurance policy was paid Equipment was purchased in the middle of the year. An employee was paid his weekly wages in full at the end of the week. Rent was paid for the month. An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month. Six months of rent were paid in advance. O a 24-month insurance policy was prepaid Supplies were purchased at the beginning of the year, but not all were used,

Answer 1

	Adjustments required:
	Equipment was purchased in the middle of the year	(Depreciation at the end is to be provided)
	An advance payment was received from a customer earlier in the month,but only partially earned by the end of the month
	(Adjustment entry required for the revenue partially earned)
	Six months of rent were paid in advance
	(Adjustment entry required for the rent expired)
	A 24-month insurance policy was prepaid
	(Adjustment entry required for the Insurance expired)
	Supplies were purchased at the beginning of the year,but not all were used
	(Adjustment entry required for supplies used)