Reference no: EM132700555

Question - Record the appropriate adjusting journal entries on 1/31/2020 based on the following:

1. An inventory of supplies reveals that only $200 of supplies remain as of 1/31/2020. (You'll need to add a new Supplies account - Account Type: Expenses, Detail Type: Supplies & Materials, Name: Supplies)

2. $1,500 of prepaid expenses expired (representing prepaid insurance) in the month of January.

3. A bill for $350 was received and recorded in the next month from FixIt, Inc. for repairs performed in the current month. Create a new liability account like you did earlier in the chapter.

4. Phone Consulting services recorded on invoice #1003 for $210 to Diamond Girl, Inc. were never performed even though invoiced. Thus, the revenue had not been earned. Create a new liability account

5. Phone Consulting services of $1,800 were performed on the last day of the month for a new customer Graham Engineering, Inc. but not invoiced to the customer or recorded into the accounting records until a few days into the next month. Create a new asset account like you did earlier in the chapter.

6. Depreciation Expense of $1,200 ($850 and $350 for Buildings and Machinery & Equipment respectively) needed to be recorded for the month.