The following are transactions for Zero's Zoo in T-accounts. The year-end for Zero's Zoo is December 31.
Question:
The following are transactions for Zero's Zoo in T-accounts. The year-end for Zero's Zoo is December 31.
A. On March 1, Zero's Zoo borrowed $15,000 from the bank at 6%, both interest, and principal due in one year.
B. On May 1, the Zoo purchased a two-year insurance policy beginning immediately and paid $6,750 cash.
C. On July 1, the Zoo prepaid its rent for three years, paying $5,400 in cash.
D. On November 1, the company purchased $475 worth of supplies in cash. It had started the year with $375 worth of supplies on hand.
E. Over the course of the year, Zero's Zoo earned $54,500 in cash sales.
Make the necessary adjustments to Zero's Zoo's accounts in preparation for the year-end financial statements. At year-end, there were $175 worth of supplies on hand.
Expert Answer:
A Mar 01 Debit Cash 15000 Credit 6 Bank Loan 15000 Cash received against Bank Loan B May 01 Debit In... View the full answer
