Chapter $3$ Homework

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$3$

$4$

$1\mathrm{.}57$

points

For each separate case, record the necessary adjusting entry.

a$.$ On July $1,$ Lopez Company paid $$2,900$ for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December $31.$

b$.$ Zim Company has a Supplies account balance of $$8,400$ at the beginning of the year. During the year, it purchases $$3,700$ of supplies. As of December $31,$ a physical count of supplies shows $$1,650$ of supplies available.

Prepare the year$-$end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December $31.$

View transaction list

Journal entry worksheet $$

$2$

Record year$-$end adjusting entry to reflect expiration of the insurance as of December $31.$

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[$a$.,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

$*****$ the second journal entry says "Record the supplies used during the year."$*********$