Refer to E4-6.
Fesel Company is making adjusting journal entries for the year ended December 31, 2014. In developing information for the adjusting journal entries, you learned the following:
a. A two-year insurance premium of $7,200 was paid on January 1, 2014, for coverage beginning on that date. As of December 31, 2014, the unadjusted balances were $7,200 for Prepaid Insurance and $0 for Insurance Expense.
b. At December 31, 2014, you obtained the following data relating to shipping supplies.

Required
Prepare adjusting journal entries at December 31, 2014, for transaction (a) dealing with insurance, and transaction (b) dealing with shipping supplies.

Transcribed Image Text:

Unadjusted balance in Shipping Supplies on December 31, 2014 Unadjusted balance in Shipping Supplies Expense on December 31, 2014 $15,000 Shipping supplies on hand, counted on December 31, 2014 10,000