White Stripes Animal Encounters Operates a Drive Through Tourist Attraction

Essay

White Stripes Animal Encounters operates a drive through tourist attraction. The company adjusts its accounts at the end of each month. The selected accounts appearing below reflect balances after adjusting entries were prepared on April 30. The adjusted trial balance shows the following: $\begin{array}{lr}\text { Prepaid Insurance } & \$ 16,000 \\\text { Buildings } & 30,000 \\\text { Accumulated Depreciation-Buildings } & 6,600\end{array}$ Other data:
1. Three months' insurance had been prepaid on April 1.
2. The buildings are being depreciated at $7,200 per year.
Instructions
(a) Calculate the following:
1. Monthly insurance expense.
2. The age of the buildings in months.
(b) Prepare the adjusting entries that were made by White Stripes Animal Encounters on April 30.