Prepaid rent for one year on January 1, 2019, in the amount of $95,760. Record the adjustment on January 31, 2019. Purchased supplies for $4,600 on January 1, 2019. The inventory of supplies was $2,200 on January 31, 2019. Record the adjustment for the amount of the supplies that were used during the month of January 2019. Depreciation is computed using the straight-line method. Equipment purchased on January 1, 2019, for $31,200 has an estimated useful life of 4 years with no salvage value. Record the adjustment on January 31, 2019. Signed a 12-month contract for $4,800 of prepaid advertising on January 1, 2019. Record the adjustment for the amount of the advertising contract that expired during the month of January 2019.

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Business

Logan Valenzuela

26 May, 11:48

Prepaid rent for one year on January 1, 2019, in the amount of $95,760. Record the adjustment on January 31, 2019. Purchased supplies for $4,600 on January 1, 2019. The inventory of supplies was $2,200 on January 31, 2019. Record the adjustment for the amount of the supplies that were used during the month of January 2019. Depreciation is computed using the straight-line method. Equipment purchased on January 1, 2019, for $31,200 has an estimated useful life of 4 years with no salvage value. Record the adjustment on January 31, 2019. Signed a 12-month contract for $4,800 of prepaid advertising on January 1, 2019. Record the adjustment for the amount of the advertising contract that expired during the month of January 2019.

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Miranda Hodge · Answer 1

rent expense 7,980 debit

prepaid rent 7,980 credit

supplies expense 2,400 debit

supplies 2,400 credit

depreication expense 650 debit

accumulated dep equipment 650 credit

advertizing expense 400 debit

prepadi advertizing 400 credit

Explanation:

95,760 for a complete year we divide by 12 to get the amount per month:

7,980 we will decrease the prepaid and delcare the expense

supplies 4,600 - 2,200 end of the month = 2,400 consumed / expense incurred

we decrease supplies and post the expense for the consumer amount

depreciation for the month:

31,200 / 4 = 7,800 per year / 12 = 650 per month

the adv will be the same procedure as rent: 4,800 / 12 = 400