Reference no: EM132426675

Question - Hammond, Inc.'s general ledger includes these selected accounts on March 31, 2018, before adjusting entries are prepared:

Prepaid rent $3,600

Supplies 1,800

Equipment 24,000

Accumulated depreciation-equipment 5,750

Just answer these questions from the information given above thanks please read carefully:

1. Three months of rent ($1,200 per month) were paid in advance on March 1.

2. Supplies of $1,800 were purchased on March 2 for cash. A count determined that supplies on hand total $800 on March 31.

3. The equipment was purchased on April 1, 2016, for cash, and is estimated to have a useful life of eight years. Hammond uses straight-line depreciation.

For each of the above three items, do the following:

(a) Prepare the original transaction journal entry.

(b) Prepare the adjusting journal entries required at March 31, 2018, assuming entries are made monthly.

(c) Set up T accounts (you can omit the Cash account), enter any opening balances, post the transaction and adjusting journal entries prepared in (a) and (b), and check your work.