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Point 1: On June 1, 2019, Cain Company, a new firm, paid $4,750 rent in advance for a five-month period. The $4,750 was debited to the Prepaid Rent account.
Point 2: On June 1, 2019, the firm bought supplies for $7,700. The $7,700 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $3,175 were on hand.
Point 3: On June 1, 2019, the firm bought equipment costing $52,800. The equipment has an expected useful life of 8 years and no salvage value. The firm will use the straight-line method of depreciation.
Question 1: How do you enter end-of-June adjusting entries for Cain Company.
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