Reference no: EM132532818

Question 1: Record the adjusting entries as of 12/31 for the following transactions. Assume the original transactions were journalized correctly and no adjusting entries have been made yet this year.

1. Supplies of $800 were purchased on account 3/1. At year-end just $210 of supplies remain
2. received $16,800 in advance from client Co. On 9/1 for work, we'll perform evenly from October 1 to January 31st.
3. paid $3360 on 8/1 for 12 months Insurance in advance.
4. purchased $42,400 of equipment on 5/31. The equipment has a 5-year life and a salvage value of $400
5. borrowed $7,000 on 6/30 and signed a 9 month 7% note with interest and principal due at maturity.
6. Paid 6 months rent in advance of $25,200 on 10/1.