The following data relate to the accounts of Crane Company. Unpaid salaries and wages at year...

 

Transcribed Image Text:

The following data relate to the accounts of Crane Company. Unpaid salaries and wages at year end amount to $610. Crane Company owns bonds of another corporation that pay annual interest of $1,160. These bonds were purchased on April 1, 2020, and the next interest payment will be received on April 1, 2021. a. b. C e. A two-year insurance policy was purchased on June 1, 2020. The $1,920 insurance premium was paid on that date and was debited to Prepaid Insurance. Service Revenue was credited for $960 on June 1, 2020. The amount represents a one-year advance payment for services to be performed by Crane Company through May 31, 2021. The Supplies account shows a balance of $2,100 on December 31, 2020. A physical count of the supplies on hand at this date reveals a total of $1,690 available. Prepare the necessary adjusting journal entries indicated by each item for the year ended December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) The following data relate to the accounts of Crane Company. Unpaid salaries and wages at year end amount to $610. Crane Company owns bonds of another corporation that pay annual interest of $1,160. These bonds were purchased on April 1, 2020, and the next interest payment will be received on April 1, 2021. a. b. C e. A two-year insurance policy was purchased on June 1, 2020. The $1,920 insurance premium was paid on that date and was debited to Prepaid Insurance. Service Revenue was credited for $960 on June 1, 2020. The amount represents a one-year advance payment for services to be performed by Crane Company through May 31, 2021. The Supplies account shows a balance of $2,100 on December 31, 2020. A physical count of the supplies on hand at this date reveals a total of $1,690 available. Prepare the necessary adjusting journal entries indicated by each item for the year ended December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)