Make the correct adjusting entries - the following entries require an adjustment in January.

A - for depreciation

B- Prepaid Insurance

Also the accountant says that he should begin accruing $50 a month for income taxes staring January.

Then post these adjustments to your T accounts and get new totals.

A:Steve purchased office equipment on credit at Office Depot in the amount of $5,000. He will be depreciating the equipment over 5 years.

B: Steve purchases a 6 month insurance policy in January. It costs $1,200.