Tebby's Transportation Corporation prepares annual financial statements. Below are some selected accounts and their balances on the June 30 trial balance before any adjustments have been made. An analysis of the account balances provided the following additional information:
1. A physical count of office supplies revealed $1,200 on hand on June 30.
2. An annual insurance policy was purchased on June 1 for $6,600.
3. The office equipment was purchased on December 1 for $16,200 and has an estimated useful life of five years and no residual value.
4. Rent received in advance that remains unearned at June 30 is $500.
5. An additional $500 of wages has been earned but not yet paid.
Instructions
Using the above additional information, prepare the adjusting entries that should be made on June 30 (adjusting entries are made annually).

Question

Tebby's Transportation Corporation prepares annual financial statements. Below are some selected accounts and their balances on the June 30 trial balance before any adjustments have been made.  An analysis of the account balances provided the following additional information:
1. A physical count of office supplies revealed $1,200 on hand on June 30.
2. An annual insurance policy was purchased on June 1 for $6,600.
3. The office equipment was purchased on December 1 for $16,200 and has an estimated useful life of five years and no residual value.
4. Rent received in advance that remains unearned at June 30 is $500.
5. An additional $500 of wages has been earned but not yet paid.
Instructions
Using the above additional information, prepare the adjusting entries that should be made on June 30 (adjusting entries are made annually).

Quizplus · Accepted Answer

The Answer of Tebby's Transportation Corporation prepares annual financial statements. Below are some selected accounts and their balances on the June 30 trial balance before any adjustments have been made.  An analysis of the account balances provided the following additional information:
1. A physical count of office supplies revealed $1,200 on hand on June 30.
2. An annual insurance policy was purchased on June 1 for $6,600.
3. The office equipment was purchased on December 1 for $16,200 and has an estimated useful life of five years and no residual value.
4. Rent received in advance that remains unearned at June 30 is $500.
5. An additional $500 of wages has been earned but not yet paid.
Instructions
Using the above additional information, prepare the adjusting entries that should be made on June 30 (adjusting entries are made annually).

Tebby's Transportation Corporation Prepares Annual Financial Statements