Read each of the following transactions for Gallagher Enterprises. Determine the accounts and amounts to be debited and credited in the necessary end-of-January adjustments.
A. On January 1, 2013, Gallagher Enterprises, a new firm, paid $6,000 rent in advance for a three-month period. The $6,000 was debited to the Prepaid Rent account.
B. On January 1, 2013, the firm bought supplies for $3,000. The $3,000 was debited to the Supplies account. An inventory of supplies at the end of June showed that supplies costing $1,000 were on hand.
C. On January 1, 2013, the firm bought equipment costing $12,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.

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The Answer of Read each of the following transactions for Gallagher Enterprises. Determine the accounts and amounts to be debited and credited in the necessary end-of-January adjustments.
A. On January 1, 2013, Gallagher Enterprises, a new firm, paid $6,000 rent in advance for a three-month period. The $6,000 was debited to the Prepaid Rent account.
B. On January 1, 2013, the firm bought supplies for $3,000. The $3,000 was debited to the Supplies account. An inventory of supplies at the end of June showed that supplies costing $1,000 were on hand.
C. On January 1, 2013, the firm bought equipment costing $12,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.

Read Each of the Following Transactions for Gallagher Enterprises