Introduction to Accounting An Integrated Approach Eighth Edition Chapter 7 E7.12

.12 For each of the following situations, prepare the adjusting entry for the month ended July 31 and indicate the effect each adjustment would have on net income: A. Delgado, Inc., purchased a three-year insurance policy on January 2 for $6,000. Delgado prepares quarterly financial statements. B. On July 1, Rottman Company had a $390 balance in its supplies account. During July, $1,450 of additional supplies were purchased. An inventory at July 31 showed $275 of supplies still on the shelves. C. Last year, Apple Enterprises purchased some equipment at a total cost of $75,000. The estimated useful life of the equipment is five years. Apple prepares semiannual financial statements