Question

a. On July 1, 2011, Rendex Company paid $3,000 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31, 2011. Prepare the adjusting entry to reflect expiration of the insurance as of December 31, 2011.
b. Indus Company has a Supplies account balance of $900 on January 1, 2011. During 2011, it purchased $4,000 of supplies. As of December 31, 2011, a supplies inventory shows $750 of supplies available. Prepare the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2011.


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  • CreatedMarch 18, 2015
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