Adjusting Entries and Inventory Costing Methods - Periodic Method

Adjusting Entries Selected accounts of ldeal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjusting entries have been made: Debit Credit Prepaid insurance $6,860 2,130 Supplies 6,144 Office equipment Unearned rent revenue 6,550 Salaries expense 3,300 Rent revenue 15,200 Monthly financial statements are prepared. Using the following information, record in a general journal the adjusting entries necessary on January 31 a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $950 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly d. On January 1, the firm collected six months' rent in advance from a tenant renting space for $925 per month e. Accrued salaries not recorded as of January 31 are $500 Round your answer to the nearest dollar