Fes Company is making adjusting journal entries for the year ended December In developing information for the N sunniles.
If a transaction affects a temporary account, include the account name under "Temporary Accounts" and the financial effect under
NI Do not enter an amount under "Stockholders' Equity" for these transactions; their impact on stockholders' equity will occur later
when the temporary accounts are closed at yearend. Do not enter No Effect NE or zero for any cells without an effect for each
transaction despite what may be shown in textbook demonstration cases as these cells should be left blank.
Complete this question by entering your answers in the tabs below.
Required
Indicate the accounting equation effects of the adjustment required for
a insurance and
b supplies.
If a transaction affects a temporary account, include the account name under "Temporary Accounts" and the financial effect under NI Do not enter an amount under "Stock
equity will occur later when the temporary accounts are closed at yearend. Do not enter No Effect NE or zero for any cells without an effect for each transaction despite whi
be left blank.
Note: Enter any decreases to Assets, Liabilities, Stockholders' Equity, or Net Income with a minus sign.
adjusting journal entries, you learned the following:
a A twoyear insurance premium of $ was paid on January for coverage beginning on that date. As of
December the unadjusted balances were $ for Prepaid Insurance and $ for Insurance Expense.
b At December you obtained the following data relating to supplies.
Required:
Of the $ paid for insurance, what amount should be reported on the income statement as Insurance Expense? What
amount should be reported on the December balance sheet as Prepaid Insurance?
What amount should be reported on the income statement as Supplies Expense? What amount should be reported on the
December balance sheet as Supplies?
Indicate the accounting equation effects of the adjustment required for
a insurance and
b supplies.
If a transaction affects a temporary account, include the account name under "Temporary Accounts" and the financial effect under
NI Do not enter an amount under "Stockholders' Equity" for these transactions; their impact on stockholders' equity will occur later
when the temporary accounts are closed at yearend. Do not enter No Effect NE or zero for any cells without an effect for each
transaction despite what may be shown in textbook demonstration cases as these cells should be left blank.
Complete this question by entering your answers in the tabs below.
