Determine the necessary end-of-June adjustments for Anderson Company. 1. On June 1, 2013, Anderson Company, a new

Question:

Determine the necessary end-of-June adjustments for Anderson Company.
1. On June 1, 2013, Anderson Company, a new firm, paid $5,400 rent in advance for a six-month period. The $5,400 was debited to the Prepaid Rent account.
2. On June 1, 2013, the firm bought supplies for $7,450. The $7,450 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $3,050 were on hand.
3. On June 1, 2013, the firm bought equipment costing $60,000. The equipment has an expected useful life of 10 years and no . The firm will use the straight-line method of depreciation.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...