1. Imagine that over your first month, you have serviced 100 cash customers at $100/customer, giving you $10000 in revenue. You also discovered the following expenses: Supplies on hand were $1250, you used one month's of insurance coverage, and you depreciated your furniture, equipment, computer, and truck on a straight-line monthly basis based on the life of each individual fixed asset. The life of the furniture and equipment were 10 years, the computer and truck were estimated to be used for 5 years.
2. Prepare adjusting entries.

Answer rating: 100% (QA)

To prepare the adjusting entries for the first month we need to account for the expenses incurred and the depreciation of fixed assets Lets break down ... View the full answer