Prepare  adjustment entries of  following Company A at January 31st.

1. Office supplies having original cost $4,320 were unused till the end of the period. Office supplies having original cost of $22,800 are shown on unadjusted trial balance.

2. Prepaid rent of $36,000 was paid for the months January, February and March.

3. The equipment costing $80,000 has useful life of 5 years and its estimated salvage value is $14,000. Depreciation is provided using the straight line depreciation method.

4. The interest rate on $20,000 note payable is 9%. Accrue the interest for one month.

5. $3,000 worth of service has been provided to the customer who paid advance amount of $4,000.

Answer rating: 100% (QA)

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