Each of the following independent events requires a

Question

Recording adjusting entries in general journal format.

Required

Each of the following independent events requires a year-end adjusting entry. Record each event and the related adjusting entry in general journal format. The first event is recorded as an example. Assume a December 31 closing date.

 

a. Paid $8,400 cash in advance on October 1 for a one-year lease on office space.

b. Purchased $1,600 of supplies on account on June 15. At year end, $200 of supplies remained on hand.

c. Received a $4,800 cash advance on September 1 for a contract to provide services for one year beginning immediately..

d. Paid $4,800 cash in advance on May 1 for a one-year insurance policy.