Reference no: EM132598394
Question 1: Make the following adjusting journal entries in good form for Entity B for the year ended December 31, 2022.
1. In January 2022, Entity B purchased equipment for $18,000. The equipment is expected to last four years and the company utilized the straight line method.
2. Entity B received its property tax bill in the amount of $6,000. The bill is due on February 28, and Entity B will pay it then.
3. One-third of a customer's $1,200 retainer (the customer paid at the beginning of the year) has now been earned.
4. On June 30, Entity B purchased a one-year insurance policy for $900. One-half has now expired.
5. The bookkeeper discovered a sheaf of invoices for services rendered in the amount of $9,500 that had fallen behind a file cabinet. Though the work has been completed, the customers have not been billed.
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