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College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
Edition 2ISBN: 978-0073396958College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
Edition 2ISBN: 978-0073396958 Exercise 12
Calculating adjustments.
For each of the following situations, determine the necessary adjustments.
1. A firm purchased a two-year insurance policy for $6,000 on July 1, 2013. The $6,000 was debited to the Prepaid Insurance account. What adjustment should be made to record expired insurance on the firm's July 31, 2013, worksheet?
2. On December 1, 2013, a firm signed a contract with a local radio station for advertising that will extend over a one-year period. The firm paid $15,000 in advance and debited the amount to Prepaid Advertising. What adjustment should be made to record expired advertising on the firm's December 31, 2013, worksheet?
For each of the following situations, determine the necessary adjustments.
1. A firm purchased a two-year insurance policy for $6,000 on July 1, 2013. The $6,000 was debited to the Prepaid Insurance account. What adjustment should be made to record expired insurance on the firm's July 31, 2013, worksheet?
2. On December 1, 2013, a firm signed a contract with a local radio station for advertising that will extend over a one-year period. The firm paid $15,000 in advance and debited the amount to Prepaid Advertising. What adjustment should be made to record expired advertising on the firm's December 31, 2013, worksheet?
Explanation
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• The insurance policy pertains to a...
College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
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