Exercise 3-6 (Algo) Preparing adjusting entries LO P1, P2, P3 a. Depreciation on the company's...
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Exercise 3-6 (Algo) Preparing adjusting entries LO P1, P2, P3 a. Depreciation on the company's equipment for the year is computed to be $15,000 b. The Prepaid Insurance account had a $8,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $1,530 of unexpired insurance coverage remains c. The Supplies account had a $210 debit balance at the beginning of the year, and $2,680 of supplies were purchased during the year. The December 31 physical count showed $248 of supplies avallable. d. One-third of the work related to $15,000 of cash received in advance was performed this period e. The Prepaid Rent account had a $5,200 debit balance at December 31 before adjusting for the costs of expired prepaid rent An analysis of the rental agreement showed that $3,670 of prepaid rent had expired. 1. Wage expenses of $3,000 have been incurred but are not paid as of December 31. Prepare adjusting journal entries for the year ended December 31 for each separate situation
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