Fes Company is making adjusting journal entries for the year ended December 31,
ID: 2336617 • Letter: F
Question
Fes Company is making adjusting journal entries for the year ended December 31, 2018. In developing information for the adjusting journal entries, you learned the following:
A two-year insurance premium of $8,900 was paid on January 1, 2018, for coverage beginning on that date. As of December 31, 2018, the unadjusted balances were $8,900 for Prepaid Insurance and $0 for Insurance Expense.
At December 31, 2018, you obtained the following data relating to supplies:
Required:
Prepare adjusting journal entries at December 31, 2018, for (a) insurance, and (b) supplies. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Unadjusted balance in Supplies on December 31, 2018 $ 23,500 Unadjusted balance in Supplies Expense on December 31, 2018 89,000 Supplies on hand, counted on December 31, 2018 16,800Explanation / Answer
Adjusting entry :
Date account and explanation debit credit Dec 31,2018 Insurance expense (8900*12/24) 4450 Prepaid insurance 4450 (To record insurance expense) Dec 31,2018 Supplies expense (23500-16800) 6700 Supplies 6700 (To record supplies expense)Related Questions
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