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2. Prepare adjusting entries in the General Journal

October Transactions

October 1 the owner invested $40,000 cash in the business

October 1 purchased equipment for $15,000 on account.

October 1 purchased a 4-year insurance policy to insure the business for $2000

For cash.

October 2 Paid $2000 cash for supplies.

October 4 received $3,000 cash from customers for services rendered

October 14 Paid for the equipment purchase on October 1.

October 15 Paid wages $1,750

October 16 Performed services worth $4,500 for credit customers

October 20 Received $1,400 cash from customers previously billed on account

October 22 the owner withdrew $3,400 cash for personal use

October 31 Paid utility bill for October $500.

End of Month AdjustmentsOctober 31

1. Assume that the equipment purchased on October 1 has no trade-in value and an expected life of 5 years. Prepare the adjusting entry for the month of October.

2. Prepare the adjusting entry for the insurance policy purchased on October 1 for the month of October.

3. After taking a physical count of the supplies, you discover that there are actually $1,400 of supplies left in the supply room. Prepare the adjusting entry for supplies for the month of October.

4. Wages for October 29 31 are unpaid at the end of the month. Normally, wages for a regular 5-day work week total $5,000. Prepare the adjusting entry for unpaid wages for the month of October.

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