Reference no: EM132605465
Question 1: do the adjusting entries for the following
1. Sarajevah Company purchased a 2-year insurance policy on February 1, 2002 and debited Prepaid Insurance for $1,800.
2. On January 1, 2002, a tenant in an apartment building owned by the Sarajevah Company paid $5,700 which represents six months' rent in advance. The amount received was credited to the Unearned Rent account.
3. On February 1, 2002, the balance in the Office Supplies account was $200. During February, office supplies costing $480 were purchased. A physical count of office supplies at February 28 revealed that there was $240 still on hand.
4. On January 1, 2002, Sarajevah Company purchased a delivery van for $30,000. It is estimated that the annual amortization will be $6,000.
5. Sarajevah Company has two employees who earn $80 and $100 per day, respectively. They are paid each Friday for a five-day work week that begins each Monday. February 28 is a Thursday in 2002.
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