Using the data from Exercise 3-1, record the adjustments at the end of February to record the insurance expense and
Using the data from Exercise 3-1, record the adjustments at the end of February to record the insurance expense and supplies expense. There was $300 of supplies on hand as of February 28. Identify the adjustment for insurance as (a1) and supplies as (a2). Enter the Net income under the Income Statement column after recording both adjustments.
Data from Exercise 3-1
Alex Vera organized Succulent Express at the beginning of February 20Y4. During February, Succulent Express entered into the following transactions:
a. Terry Mason invested $30,000 in Succulent Express in exchange for common stock.
b. Paid $5,400 on February 1 for an insurance premium on a one-year policy.
c. Purchased supplies on account, $1,800.
d. Received fees of $57,000 during February.
e. Paid expenses as follows: wages, $21,600; rent, $6,400; utilities, $2,800; and miscellaneous, $3,200.
f. Paid dividends of $8,000.
This problem has been solved!
Step by Step Answer: