Bokhari Company prepares annual 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 year ended September 30, 2014. (Note: Debit column does not equal credit column because this is a partial listing of selected account balances.)
An analysis of the account balances by the company's accountant provided the following additional information:
1. A physical count of office supplies revealed $1,200 on hand on September 30.
2. A one-year life insurance policy was purchased on June 1 for $5,400.
3. Office equipment is expected to have a life of 5 years. Depreciation is recorded monthly.
4. The amount of rent received in advance that remains unearned at September 30 is $500.
Instructions
Prepare the adjusting entries that should be made by Bokhari Company on September 30.

Question

Bokhari Company prepares annual 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 year ended September 30, 2014.  (Note: Debit column does not equal credit column because this is a partial listing of selected account balances.)
An analysis of the account balances by the company's accountant provided the following additional information:
1. A physical count of office supplies revealed $1,200 on hand on September 30.
2. A one-year life insurance policy was purchased on June 1 for $5,400.
3. Office equipment is expected to have a life of 5 years. Depreciation is recorded monthly.
4. The amount of rent received in advance that remains unearned at September 30 is $500.
Instructions
Prepare the adjusting entries that should be made by Bokhari Company on September 30.

Quizplus · Accepted Answer

The Answer of Bokhari Company prepares annual 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 year ended September 30, 2014.  (Note: Debit column does not equal credit column because this is a partial listing of selected account balances.)
An analysis of the account balances by the company's accountant provided the following additional information:
1. A physical count of office supplies revealed $1,200 on hand on September 30.
2. A one-year life insurance policy was purchased on June 1 for $5,400.
3. Office equipment is expected to have a life of 5 years. Depreciation is recorded monthly.
4. The amount of rent received in advance that remains unearned at September 30 is $500.
Instructions
Prepare the adjusting entries that should be made by Bokhari Company on September 30.

Bokhari Company Prepares Annual Financial Statements