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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 33
Calculating adjustments.
Determine the necessary end-of-June adjustments for Anderson Company.
1. On June 1, 2013, Anderson Company, a new firm, paid $5,400 rent in advance for a six-month period. The $5,400 was debited to the Prepaid Rent account.
2. On June 1, 2013, the firm bought supplies for $7,450. The $7,450 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $3,050 were on hand.
3. On June 1, 2013, the firm bought equipment costing $60,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.
Determine the necessary end-of-June adjustments for Anderson Company.
1. On June 1, 2013, Anderson Company, a new firm, paid $5,400 rent in advance for a six-month period. The $5,400 was debited to the Prepaid Rent account.
2. On June 1, 2013, the firm bought supplies for $7,450. The $7,450 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $3,050 were on hand.
3. On June 1, 2013, the firm bought equipment costing $60,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.
Explanation
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• Rent prepayment of $5,400 represen...
College Accounting 2nd Edition by David Haddock, John Price,Michael Farina
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