Determine the necessary end-of-June adjustments for Conner Company.
1. On June 1, 20X1, Conner Company, a new firm, paid $16,800 rent in advance for a seven-month period. The $16,800 was debited to the Prepaid Rent account.
2. On June 1, 20X1, the firm bought supplies for $12,580. The $12,580 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $9,275 were on hand.
3. On June 1, 20X1, the firm bought equipment costing $108,000. The equipment has an expected useful life of nine years and no salvage value. The firm will use the straight-line method of depreciation.