Question :
74. Read each of the following transactions for Enterprises Security Systems. : 1197831
74. Read each of the following transactions for Enterprises Security Systems. Determine the accounts and amounts to be debited and credited in the necessary end-of-July adjustments.
A. On July 1, 2013, Enterprises Security Systems, a new firm, bought supplies for $2,300. The $2,300 was debited to the Supplies account. An inventory of supplies at the end of June showed that supplies costing $900 were on hand.
B. On July 1, 2013, the firm bought equipment costing $24,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.
C. On July 1, 2013, the firm paid $4,500 rent in advance for a nine-month period. The $4,500 was debited to the Prepaid Rent account.
75. Read the description of following adjustments that are required at the end of the accounting period for Riley Furniture Restoration. Determine the account and amount to be debited and the account and amount to be credited.
A. Purchased supplies for $1,000 on June 1, 2013. Inventory of supplies was $300 on June 30, 2013. Record the adjustment for the amount of the supplies that were used during the month of June 2013.
B. Signed a 4-month contract for $1,200 of prepaid advertising on June 1, 2013. Record the adjustment for the amount of the advertising contract that expired during the month of June 2013.
C. Prepaid rent for the year on June 1, 2013. Rent expired during the month of June 2013, $700. Record the adjustment on June 30, 2013.
D. Depreciation is computed using the straight-line method. Equipment purchased on June 1, 2013, for $16,800 has an estimated useful life of 5 years with no salvage value. Record the adjustment on June 30, 2013.
76. Read the description of following adjustments that are required at the end of the accounting period for Hubbard Repair Services. Determine the account and amount to be debited and the account and amount to be credited.
A. Purchased supplies for $2,000 on November 1, 2013. Inventory of supplies was $600 on November 30, 2013. Record the adjustment for the amount of the supplies that were used during the month of November 2013.
B. Signed a 4-month contract for $2,400 of prepaid advertising on November 1, 2013. Record the adjustment for the amount of the advertising contract that expired during the month of November 2013.
C. Prepaid rent for the year on November 1, 2013. Rent expired during the month of November 2013, $1,500. Record the adjustment on November 30, 2013.
D. Depreciation is computed using the straight-line method. Equipment purchased on November 1, 2013, for $6,000 has an estimated useful life of 5 years with no salvage value. Record the adjustment on November 30, 2013.
77. Read the description of following adjustments that are required at the end of the accounting period for Hubbard Repair Services. Determine the account and amount to be debited and the account and amount to be credited.
A. Prepaid rent for the year on April 1, 2013. Rent expired during the month of April 2013, $3,500. Record the adjustment on April 30, 2013.
B. Purchased supplies for $2,000 on April 1, 2013. Inventory of supplies was $1,600 on April 30, 2013. Record the adjustment for the amount of the supplies that were used during the month of April 2013.
C. Depreciation is computed using the straight-line method. Equipment purchased on April 1, 2013, for $18,000 has an estimated useful life of 5 years with no salvage value. Record the adjustment on April 30, 2013.
D. Signed a 6-month contract for $2,400 of prepaid advertising on April 1, 2013. Record the adjustment for the amount of the contract that expired during the month of April 2013.
78. Read the description of following adjustments that are required at the end of the accounting period for Drake Consulting Services. Determine the account and amount to be debited and the account and amount to be credited.
A. Prepaid rent for the year on January 1, 2013. Rent expired during the month of January 2013, $7,000. Record the adjustment on January 31, 2013.
B. Purchased supplies for $1,600 on January 1, 2013. Inventory of supplies was $600 on January 30, 2013. Record the adjustment for the amount of the supplies that were used during the month of January 2013.
C. Depreciation is computed using the straight-line method. Equipment purchased on January 1, 2013, for $36,000 has an estimated useful life of 5 years with no salvage value. Record the adjustment on January 31, 2013.
D. Signed a 12-month contract for $2,400 of prepaid advertising on January 1, 2013. Record the adjustment for the amount of the advertising contract that expired during the month of January 2013.
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