Wang Supply prepares monthly financial statements. Listed below are some selected accounts and their balances at June
Question:
Wang Supply prepares monthly financial statements. Listed below are some selected accounts and their balances at June 30. Adjustments generally are done monthly, but no adjustments have been made for the month of June, 2017. Wang has a May 31 year end.
Wang Supply
Unadjusted Trial Balance (partial)
June 30, 2017
| Debit | Credit | |
| Prepaid Insurance | $ 2,940 | |
| Supplies | 520 | |
| Vehicles | 32,000 | |
| Accumulated Depreciation - Vehicles | $ 9,360 | |
| Notes Payable | 22,400 | |
| Unearned Revenue | 1,500 | |
| Rent Revenue | 142,000 |
An analysis of the account balances by the company's bookkeeper provided the following additional information:
| 1. | A two-year insurance policy was purchased on March 1, 2017 for $3,360. | |
| 2. | A physical count of supplies revealed $250 on hand on June 30, 2017. | |
| 3. | The note payable is for one year at an annual interest rate of 5%, dated June 1, 2017. | |
| 4. | The vehicle is being depreciated at the rate of $2,520 per year. | |
| 5. | The amount of rent received in advance that remains unearned at June 30, 2017 is $1,370. |
Using the additional information above, prepare the adjusting entries that should be made by the Wang Supply on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 125.)
Expert Answer:
Based on the additional information provided the adjusting entries that should be made by Wang Suppl... View the full answer
