Watson Ltd prepares monthly financial statements. Below are listed some selected accounts and their balances on the 30 September trial balance before any adjustments have been made for the month of September.
(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 30 September.
2. A two-year insurance policy was purchased on 1 June for $5,400.
3. Office equipment depreciates $5,400 per year.
4. The amount of rent received in advance that remains unearned at 30 September is $500.
Using the above additional information, prepare the adjusting entries that should be made by Watson Ltd on 30 September.

Question

Watson Ltd prepares monthly financial statements. Below are listed some selected accounts and their balances on the 30 September trial balance before any adjustments have been made for the month of September.
  (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 30 September.
2. A two-year insurance policy was purchased on 1 June for $5,400.
3. Office equipment depreciates $5,400 per year.
4. The amount of rent received in advance that remains unearned at 30 September is $500.
Using the above additional information, prepare the adjusting entries that should be made by Watson Ltd on 30 September.

Quizplus · Accepted Answer

The Answer of Watson Ltd prepares monthly financial statements. Below are listed some selected accounts and their balances on the 30 September trial balance before any adjustments have been made for the month of September.
  (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 30 September.
2. A two-year insurance policy was purchased on 1 June for $5,400.
3. Office equipment depreciates $5,400 per year.
4. The amount of rent received in advance that remains unearned at 30 September is $500.
Using the above additional information, prepare the adjusting entries that should be made by Watson Ltd on 30 September.

Watson Ltd Prepares Monthly Financial Statements