Recording Adjusting Entries and Reporting Belates in Financial Statements Aubrae Company is making adjusting entries for the year December 31, 2014. In developing information for the adjusting entries, the accountant leaned the following: 1. A two-year insurance premium of $4,800 was paid on October 1, 2014, for coverage beginning on that date. 2. At December 31, 2014, the following data relating to Shipping Supplies were obtained from the records and supporting documents. Shipping supplies on hand, January 1, 2014 Purchases of shipping supplies during 2014 $13,000 75,000 Shipping supplies on hand, counted on December 31, 2014 20,000 Required: 1. Record the adjusting entry for insurance at December 31, 2014. 2. Record the adjusting entry for supplies at December 31, 2014, assuming that the purchases of shipping supplies were debited in full to Shipping Supplies. 3. What amount should be reported on the 2014 income statement for Insurance Expense? For Shipping Supplies Expense? 4. What amount should be reported on the December 31, 2014, balance sheet for Prepaid Insurance? For Shipping Supplies?

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Recording Adjusting Entries and Reporting Rest Financial Statements Aubrae Company is making adjusting entries for the year smber 31, 2014. In developing information for the adjusting entries, the accoursened the following: 1. A two-year insurance premium of $4,800 was paid on October 1, 2014, for coverage beginning on that date. 2. At December 31, 2014, the following data relating to Shipping Supplies were obtained from the records and supporting documents. Shipping supplies on hand, January 1, 2014 Purchases of shipping supplies during 2014 $13,000 75,000 Shipping supplies on hand, counted on December 31, 2014 20,000 Required: 1. Record the adjusting entry for insurance at December 31, 2014. 2. Record the adjusting entry for supplies at December 31, 2014, assuming that the purchases of shipping supplies were debited in full to Shipping Supplies. 3. What amount should be reported on the 2014 income statement for Insurance Expense? For Shipping Supplies Expense? 4. What amount should be reported on the December 31, 2014, balance sheet for Prepaid Insurance? For Shipping Supplies? Recording Adjusting Entries and Reporting Rest Financial Statements Aubrae Company is making adjusting entries for the year smber 31, 2014. In developing information for the adjusting entries, the accoursened the following: 1. A two-year insurance premium of $4,800 was paid on October 1, 2014, for coverage beginning on that date. 2. At December 31, 2014, the following data relating to Shipping Supplies were obtained from the records and supporting documents. Shipping supplies on hand, January 1, 2014 Purchases of shipping supplies during 2014 $13,000 75,000 Shipping supplies on hand, counted on December 31, 2014 20,000 Required: 1. Record the adjusting entry for insurance at December 31, 2014. 2. Record the adjusting entry for supplies at December 31, 2014, assuming that the purchases of shipping supplies were debited in full to Shipping Supplies. 3. What amount should be reported on the 2014 income statement for Insurance Expense? For Shipping Supplies Expense? 4. What amount should be reported on the December 31, 2014, balance sheet for Prepaid Insurance? For Shipping Supplies?