Zavier Company must make three adjusting entries on December 31
Zavier Company must make three adjusting entries on December 31, 2016.
a. Supplies used, $11,000; (supplies totaling $18,000 were purchased on December 1, 2016, and debited to the Supplies account).
b. Expired insurance, $8,200; on December 1, 2016, the firm paid $49,200 for six months’ insurance coverage in advance and debited Prepaid Insurance for this amount.
c. Depreciation expense for equipment, $5,800.
Make the journal entries for these adjustments and post the entries to the general ledger accounts: Use page 3 of the general journal for the adjusting entries. Use the following accounts and numbers.
Supplies .............. 121
Prepaid Insurance ........... 131
Accum. Depr.—Equip. ......... 142
Depreciation Exp.—Equip. ..... 517
Insurance Expense ......... 521
Supplies Expense ......... 523

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