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a. On July 1, Lopez Company paid $2,700 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. b. Zim Company has a Supplies account balance of $8,000 at the beginning of the year. During the year, it purchases $3,500 of supplies. As of December 31, a physical count of supplies shows $1,550 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31. View transaction list Journal entry worksheet 1 2 Record year-end adjusting entry to reflect expiration of the insurance as of December 31. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View genera

a. On July 1, Lopez Company paid $2,700 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. b. Zim Company has a Supplies account balance of $8,000 at the beginning of the year. During the year, it purchases $3,500 of supplies. As of December 31, a physical count of supplies shows $1,550 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31. View transaction list Journal entry worksheet 1 2 Record year-end adjusting entry to reflect expiration of the insurance as of December 31. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View genera

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 6EA: On July 1, a client paid an advance payment (retainer) of $5,000 to cover future legal services....
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Enter everything into the journal
a. On July 1, Lopez Company paid $2,700 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. b. Zim Company has a Supplies account balance of $8,000 at the beginning of the year. During the year, it purchases $3,500 of supplies. As of December 31, a physical count of supplies shows $1,550 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31. View transaction list Journal entry worksheet 1 2 Record year-end adjusting entry to reflect expiration of the insurance as of December 31. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View genera
Transcribed Image Text:a. On July 1, Lopez Company paid $2,700 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. b. Zim Company has a Supplies account balance of $8,000 at the beginning of the year. During the year, it purchases $3,500 of supplies. As of December 31, a physical count of supplies shows $1,550 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31. View transaction list Journal entry worksheet 1 2 Record year-end adjusting entry to reflect expiration of the insurance as of December 31. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View genera
Expert Solution
Step 1

>Adjusting entries are recorded, as part of completion of accounting cycle.

>These are made to record adjustments to various Income Statement and Balance Sheet accounts.

>The adjustments are mainly for:

--Deferred Revenue adjustment

--Accrued revenue adjustment

--Prepaid expenses adjustment

--Accrued expense adjustments

 

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