Fort Services initially records all prepaid expenses as expenses and all unearned revenues as revenues. Given the
Question:
Fort Services initially records all prepaid expenses as expenses and all unearned revenues as revenues. Given the following information, prepare the necessary adjusting entries at December 31, 2023, the company’s year end.
a. On January 3, 2023, the company’s first day of operations, $2,500 of supplies were purchased. A physical count revealed $700 of supplies still on hand at December 31, 2023.
b. On January 4, 2023, a $15,000 payment for insurance was made to an insurance agency for a 30-month policy.
c. On June 30, 2023, Fort Services received 9 months’ rent totalling $13,500 in advance from a tenant.
Step by Step Answer:
Horngrens Accounting Volume 1
ISBN: 9780135359709
11th Canadian Edition
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol Meissner, JoAnn Johnston, Peter Norwood