Selected accounts of Moonbeam Company are shown below as of October 31 of the current year, before any adjusting entries have been made. Moonbeam's accounting year begins October 1.
Use the following information to prepare the necessary October 31 adjusting entries:
(1) October 31 supplies on hand total $6,000.
(2) Prepaid insurance represents insurance coverage purchased for a two-year period starting October 1 of the current year.
(3) The office furniture is expected to last 8 years.
(4) Last month the firm received $6,000 of service fees in advance. One-third of these fees were earned in October.
(5) Interest earned on investments at October 31 but not yet received is $1,000.

Question

Selected accounts of Moonbeam Company are shown below as of October 31 of the current year, before any adjusting entries have been made. Moonbeam's accounting year begins October 1.
  Use the following information to prepare the necessary October 31 adjusting entries:
(1) October 31 supplies on hand total $6,000.
(2) Prepaid insurance represents insurance coverage purchased for a two-year period starting October 1 of the current year.
(3) The office furniture is expected to last 8 years.
(4) Last month the firm received $6,000 of service fees in advance. One-third of these fees were earned in October.
(5) Interest earned on investments at October 31 but not yet received is $1,000.

Quizplus · Accepted Answer

The Answer of Selected accounts of Moonbeam Company are shown below as of October 31 of the current year, before any adjusting entries have been made. Moonbeam's accounting year begins October 1.
  Use the following information to prepare the necessary October 31 adjusting entries:
(1) October 31 supplies on hand total $6,000.
(2) Prepaid insurance represents insurance coverage purchased for a two-year period starting October 1 of the current year.
(3) The office furniture is expected to last 8 years.
(4) Last month the firm received $6,000 of service fees in advance. One-third of these fees were earned in October.
(5) Interest earned on investments at October 31 but not yet received is $1,000.

Selected Accounts of Moonbeam Company Are Shown Below as of October