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Business, 16.06.2020 21:57 violetmeadow4
Scotsman Company prepares monthly financial statements. Below are listed some selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the month of September.
Debit Credit
Supplies $3,200
Prepaid Insurance 4,200
Equipment 16,200
Accumulated Depreciation—Equipment $1,000
Unearned Rent Revenue 1,200
An analysis of the account balances by the company’s accountant provided the following additional information:
1. A physical count of supplies revealed $1,000 on hand on September 30.
2. A two-year life insurance policy was purchased on June 1 for $4,800.
3. Equipment depreciated $3,000 per year.
4. The amount of rent received in advance that remains unearned at September 30 is $500.
Required:
Using the above additional information, prepare the adjusting entries that should be made by Scotsman Company on September 30.
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Scotsman Company prepares monthly financial statements. Below are listed some selected accounts and...
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