Question

Help 5 7 For each separate case, record the necessary adjusting entry. 1 a. On July 1, Lopez Company paid $2,300 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 $7.200 at the beginning of the year. During the year, it purchased $3,100 of supplies. As of December 31, a physical count of supplies shows $1,350 of supplies available. 5.33 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 1 2 > to reflect expiration of the insurance as of Record year-end adjusting December 31. Note: Enter debits before credits Transaction General Journal Debit Credit < Prey 17 of 18 !!! Next >

Answer 1

1.

Journal

a	Insurance expense	2,300
	Prepaid insurance		2,300

2.

Journal

b	Supplies expense	8,950
	Supplies		8,950

Supplies expense = Beginning supplies + Supplies purchased - Ending supplies

= 7,200 + 3,100 - 1,350

= $8,950

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