Prepare Adjusting Entries for the Following Transactions

question 44

Essay

Prepare adjusting entries for the following transactions. Omit explanations.
1. Depreciation on equipment is $600 for the accounting period.
2. There was no beginning balance of supplies and purchased $600 of supplies during the period. At the end of the period $150 of supplies were on hand.
3. Prepaid rent had a $1200 normal balance prior to adjustment. By year end $400 was unexpired.

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Definitions:

Contractual Acts

The actions or deeds performed under the terms of a contract or agreement between parties.

Statute of Frauds

A rule of law stipulating that certain categories of agreements must be documented and signed to be legally binding.

Verbal Agreement

An oral contract in which the terms are agreed upon by spoken communication rather than written, yet is legally binding.

Retaining Walls

Structures designed to restrain soil to unnatural slopes, preventing erosion and providing support.