question 3-2A

the U ned for 5744 ce was for a six month insurance e required monthly adjusting at December additional information: a. The remaining balance in Prepaid Insurans for smooth and in effect on September 1, 2020 b. 55.200 or the balance in Prepaid meent had been used as c. $1.140 of the balance in Preside ntens been used as d. The company paid $33,840 on April 1, 2020, to rent equip 2020 receive ments been used as a December 31, 2020, een used as at December 31, 2020, 2020, to rent equipment for a three-year period s Apl Probl Envi Reso Analysis Component: If the above adiustments were not recorded. be affected and if they would be over or understated. ments were not recorded. Identify the types of accounts that we Problem 3-2A Preparing adjusting entries (annual-de Details regarding Leroux Steel's purchases of plant and equipment items waring adjusting entries (annualsdepreciation expense hases of plant and equipment items during 2020 follow Date of Purchase Plant and Equipment item Estimated Useful Life Estimated Sales Value an End of Estimated Useful Cest 5 years Jan. 1 Machine A b. Apr. 1 Machine B $102.000 61,000 30,500 3,400 2.900 4 years 2 years Nov. 1 Machine C Required Prepare the annual adjusting entry at December 31, 2020, Leroux's year-end, for each plants equipment item. Assume Leroux Steel uses the straight-line method to depreciate its assets. Analysis Component: What is the purpose of recording depreciation? If depreciation is not recorded, bo would the income statement be affected? Problem 3-3A Preparing adjusting entries (monthly)-unearned revenues L04 Outdoor Services pre-sells yard maintenance packages for the gardening season. Du wher for