Problem

Determine the necessary end-of-June adjustments for Anderson Company.1. On June 1, 2013, A...

Determine the necessary end-of-June adjustments for Anderson Company.

1. On June 1, 2013, Anderson Company, a new firm, paid $5,400 rent in advance for a six-month period. The $5,400 was debited to the Prepaid Rent account.

2. On June 1, 2013, the firm bought supplies for $7,450. The $7,450 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $3,050 were on hand.

3. On June 1, 2013, the firm bought equipment costing $60,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.

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