Question $24$

$12$ pts

Prepare the necessary December $31$st adjusting journal entries for Brown Corporation, given the following information:

Brown pays its employees weekly on Fridays. This year, December $31$st falls on a Thursday and Brown's employees earn $$2,000$ each day.

Brown's books show a supplies balance on December $31$ of $$6,000.$ A year$-$end physical count of supplies on December $31$ shows a balance of $$3,900.$

On August $1,$ Brown purchased a $12-$month insurance policy for $$4,800.$

Brown negotiated a one$-$year long$-$term deal with a local university center. Brown is charging the university $$300$ per month for its delivery services. On June $1$st$,$ the university prepaid Brown for the full upcoming year $($through May of the next year$),$ paying Brown $$3,600.$ On June $1$st$,$ Brown recognized Unearned Revenue of $$3,600.$

Edit Format Table