Wade Company must make three adjusting entries on December 31, 2013.
a. Supplies used, $10,000; (supplies totaling $16,000 were purchased on December 1, 2013, and debited to the Supplies account).
b. Expired insurance, $7,200 on December 1,2013; the firm paid $43,200 for six months' insurance coverage in advance and debited Prepaid Insurance for this amount.
c. Depreciation expense for equipment, $4,800.
Make the journal entries for these adjustments and post the entries to the general ledger accounts:
Use page 3 of the general journal for the adjusting entries. Use the following accounts and numbers.
Supplies ............................121
Prepaid Insurance .................131
Accum. Depr.-Equip. ...........142
Depreciation Exp.-Equip. ......517
Insurance Expense ................521
Supplies Expense ..................523