E319 Fort Services initially records all prepaid expenses as expenses and all unearned revenues as...
50.1K
Verified Solution
Link Copied!
Question
Accounting
E319 Fort Services initially records all prepaid expenses as expenses and all unearned revenues as revenues. Given the following information, prepare the necessary adjusting entries at December 31, 2020, the companys year-end.
On January 3, 2020, the companys first day of operations, $2,500 of supplies were purchased. A physical count revealed $700 of supplies still on hand at December 31, 2020.
On January 4, 2020, a $15,000 payment for insurance was made to an insurance agency for a 30-month policy.
On June 30, 2020, Fort Services received nine months rent totalling $13,500 in advance from a tenant.
A1 A2
Recording prepaids as expenses and unearned revenues as revenues, adjusting entries
Supplies Expense, Cr $700
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
