Question: Accounting for Prepayments and Capital Assets Required Prepare journal entries

Accounting for Prepayments and Capital Assets
Required
Prepare journal entries for Iron City’s general fund for the following, including any adjusting and closing entries on December 31, 20X1:
a. Acquired a three-year fire insurance policy for $5,400 on September 1, 20X1.
b. Ordered new furniture for the city council meeting room on September 17, 20X1, at an estimated cost of $15,600. The furniture was delivered on October 1; its actual cost was $15,200, its estimated life is 10 years, and it has no residual value.
c. Acquired supplies on November 4, 20X1, for $1,800. Iron City uses the consumption method of accounting. Supplies on hand on December 31, 20X1, were $1,120.



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  • CreatedMay 23, 2014
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