Reference no: EM132823088

Question - Concord Corporation began operations on January 2. Its year end is December 31, and it adjusts its accounts annually. Selected transactions for the current year follow:

On January 2, purchased supplies for $4,250 cash. A physical count at December 31 revealed that $640 of supplies were still on hand.

Purchased a vehicle for $42,300 on April 1, paying $4,800 cash and signing a 37,500 bank loan for the balance. The vehicle is estimated to have a useful life of 5 years and the company uses straight-line depreciation. The bank loan has an interestof 3%.

Purchased a $3,600, one-year insurance policy for cash on August 1. The policy came into effect on that date.

Received a $1,680 advance cash payment from a client on November 9 for services to be performed in the future. As at December 31, half of these services had been completed.

On December 1, the company rented additional office space for a six-month period starting on December 1 for $1,290 each month. It paid rent for the months of December and January in advance on this date.

Question For each of the above situations, tell us the journal entry for the original transaction. For each of the above situations, make any adjusting entry required at December 31?