. The Adjusting Company, which opened business on June 1, 2014, have given you a portion...

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Accounting

. The Adjusting Company, which opened business on June 1, 2014,have given you a portion of their     first adjusted trial balance as of June 30, 2014.
Adjusting Company
Unadjusted Trial Balance
June 30, 2014
                                                                     Debit Balance         Credit Balance
PrepaidInsurance                                $ 3,600
Supplies                                                  2,450
UnearnedRevenue                                                                        $3,600
a.Regarding; Prepaid Insurance
i.In your own words create anadjusting transaction that will require an adjusting journalentry
ii.Based on your adjustingtransaction, prepare the correct journal entry
iii.Based on your journal entryexplain how the income statement was effected
b. Regarding; Supplies
i.In your own words create anadjusting transaction that will require an adjusting journalentry
ii.Based on your adjustingtransaction, prepare the correct journal entry
iii.Based on your journal entryexplain how the balance sheet was effected
c. Regarding; Unearned Revenue
i.In your own words create anadjusting transaction that will require an adjusting journalentry
ii. Assume that the company forgot to prepare an adjustingjournal entry for the transaction, explain what is wrong with thebalance sheet.

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3.9 Ratings (687 Votes)

a Prepaid Insurance Adjusting Transaction Insurance of 1200 has expired during the year Journal Entry 30Jun Insurance Expense 1200 To Prepaid Insurance 1200 Impact on Income Statement The Insurance See Answer

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Transcribed Image Text

. The Adjusting Company, which opened business on June 1, 2014,have given you a portion of their first adjusted trial balance as of June 30, 2014.Adjusting CompanyUnadjusted Trial BalanceJune 30, 2014 Debit Balance Credit BalancePrepaidInsurance $ 3,600Supplies 2,450UnearnedRevenue $3,600a.Regarding; Prepaid Insurancei.In your own words create anadjusting transaction that will require an adjusting journalentryii.Based on your adjustingtransaction, prepare the correct journal entryiii.Based on your journal entryexplain how the income statement was effectedb. Regarding; Suppliesi.In your own words create anadjusting transaction that will require an adjusting journalentryii.Based on your adjustingtransaction, prepare the correct journal entryiii.Based on your journal entryexplain how the balance sheet was effectedc. Regarding; Unearned Revenuei.In your own words create anadjusting transaction that will require an adjusting journalentryii. Assume that the company forgot to prepare an adjustingjournal entry for the transaction, explain what is wrong with thebalance sheet.