Rubber Company prepares quarterly financial statements. It is now June 30, 2014 and you have been asked to assist. Prepare all adjusting journal entries required for June 30, 2014.
a. The balance in the Supplies account on April 1 was $1,000. On May 15 Rubber purchased $4,200 of supplies and recorded the amount to the Supplies Expense account. On June 30 a count of supplies revealed there was $1,450 of supplies on hand.
b. Rubber records all unearned revenue in the revenue account. On June 30, 2014, the Revenue account has a balance of $62,000, and of this amount $52,000 was actually earned. The remainder of the work will be performed in August 2014.
c. Rent was paid for the next 6 months on June 15, 2014 in the amount of $36,000. The rent period is from the 15 to the 15 of each month . This amount has been debited to the Rent Expense account.
d. Two insurance policies were obtained. Policy A $19,000 purchased on April 1, 2014 for 19 months. Policy B $12,500 purchased on June 1, 2014 for 24 months. All amounts were recorded as insurance expense.

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The Answer of Rubber Company prepares quarterly financial statements. It is now June 30, 2014 and you have been asked to assist. Prepare all adjusting journal entries required for June 30, 2014.
a. The balance in the Supplies account on April 1 was $1,000. On May 15 Rubber purchased $4,200 of supplies and recorded the amount to the Supplies Expense account. On June 30 a count of supplies revealed there was $1,450 of supplies on hand.
b. Rubber records all unearned revenue in the revenue account. On June 30, 2014, the Revenue account has a balance of $62,000, and of this amount $52,000 was actually earned. The remainder of the work will be performed in August 2014.
c. Rent was paid for the next 6 months on June 15, 2014 in the amount of $36,000. The rent period is from the 15 to the 15 of each month . This amount has been debited to the Rent Expense account.
d. Two insurance policies were obtained. Policy A $19,000 purchased on April 1, 2014 for 19 months. Policy B $12,500 purchased on June 1, 2014 for 24 months. All amounts were recorded as insurance expense.

Rubber Company Prepares Quarterly Financial Statements