here are a series of questions and my answers are down below, please help me if I am wrong
1. Sain Advertising Ltd.’s opening trial balance on January 1 shows Supplies $1,600. On January 11, the company purchased additional supplies for $2,510 on account. On January 31, there are $1,640 of supplies on hand.
Prepare the adjusting entry required at January 31, assuming adjusting entries are prepared monthly.
2. On January 2, 2018, Claymore Corporation purchased a vehicle for $60,000 cash. The company uses straight-line depreciation and estimates that the vehicle will have a five-year useful life. The company has a December 31 year end and adjusts its accounts annually.
Prepare the adjusting entries required on December 31, 2018, and 2019.
3. On June 1, 2018, Bere Ltd. pays $9,240 to Safety Insurance Corp. for a one-year insurance policy. Both companies have fiscal years ending December 31 and adjust their accounts annually, Calculate the amount of insurance that expired during 2018 and the unexpired cost at December 31.
my answers:
1. supplies 2470
accounts payable 2470
2.
not sure about this one?
3. 6*770 =4620 - expired
unexpired: 4620
1 answer