Recording Adjusting Entries and Reporting Balances in Financial Statements
Aubrae Company is making adjusting entries for the year ended December In developing information for the adjusting entries, the accountant learned the following:
A twoyear insurance premium of $ was paid on October for coverage beginning on that date.
At December the following data relating to Shipping Supplies were obtained from the records and supporting documents.
Shipping supplies hand, January $
Purchases shipping supplies during
Shipping supplies hand, counted December
Required:
Record the adjusting entry for insurance at December
Record the adjusting entry for supplies at December assuming that the purchases of shipping supplies were debited in full to Shipping Supplies.
What amount should be reported on the income statement for Insurance Expense? For Shipping Supplies Expense?
What amount should be reported on the December balance sheet for Prepaid Insurance? For Shipping Supplies?
