The Adjusting Company, which opened business on June 1, 2014, have given you a p
ID: 2453999 • Letter: T
Question
The Adjusting Company, which opened business on June 1, 2014, have given you a portion of their first adjusted trial balance as of June 30, 2014. Adjusting Company Unadjusted Trial Balance June 30, 2014 Debit Balance Credit Balance Prepaid Insurance $ 3,600 Supplies 2,450 Unearned Revenue $3,600 Required: a. Regarding; Prepaid Insurance i. In your own words create an adjusting transaction that will require an adjusting journal entry ii. Based on your adjusting transaction, prepare the correct journal entry iii. Based on your journal entry explain how the income statement was effected b. Regarding; Supplies i. In your own words create an adjusting transaction that will require an adjusting journal entry ii. Based on your adjusting transaction, prepare the correct journal entry iii. Based on your journal entry explain how the balance sheet was effected c. Regarding; Unearned Revenue i. In your own words create an adjusting transaction that will require an adjusting journal entry ii. Assume that the company forgot to prepare an adjusting journal entry for the transaction, explain what is wrong with the balance sheet.
Explanation / Answer
Please provide the figures of Prepaid Insurance and others showing whether they are debit or credit balances.
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