Prepare Adjusting Entries for the Following Transactions

question 280

Essay

Prepare adjusting entries for the following transactions. Omit explanations.
1. Depreciation on equipment is €800 for the accounting period.
2. There was no beginning balance of supplies and purchased €700 of office supplies during the period. At the end of the period €100 of supplies were on hand.
3. Prepaid rent had a €1,000 normal balance prior to adjustment. By year end €800 was unexpired.

---

Definitions:

Fair Value

A measure of the estimated price at which an asset or liability could be traded in a transaction between willing parties, other than in a liquidation sale.

FASB

stands for Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards for companies and nonprofits in the United States.

Orderly Transaction

A financial transaction conducted in an organized manner without urgent pressure from either the buyer or seller, often ensuring fair market values are achieved.

Market Participants

Individuals or entities engaged in buying, selling, or trading securities, commodities, and other financial instruments in financial markets.