Garvey Company's unadjusted trial balance includes the following account balances as of December 31,2015:
The following data are available to determine adjusting entries:
A) Insurance purchased at the beginning of July for $8,700 provided coverage for twelve months (July 2015 through June 2016). The insurance coverage for July through December totaling $4,250 has now been used.
B) The company estimates $8,150 in depreciation each year.
C) A count showed $85,700 of supplies on hand at the end of the year.
D) An additional $260 of interest has been earned but has not yet been uncollected on the outstanding notes receivable.
E) Services in the amount of $5,600 were performed for customers who had previously paid in advance.
F) Services in the amount of $2,000 were performed; these services have not yet been billed or recorded.
Correct Answer:
Verified
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