Prepare Adjusting Entries for the Following Transactions

question 9

Essay

Prepare adjusting entries for the following transactions. Omit explanations.
1. Depreciation on equipment is $900 for the accounting period.
2. There was no beginning balance of supplies and purchased $500 of supplies during the period. At the end of the period $150 of supplies were on hand.
3. Prepaid rent had a $1,000 normal balance prior to adjustment. By year end $400 was unexpired.

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Definitions:

Capital-Intensive

A business process or industry that requires large amounts of money to produce goods or services, often due to high costs of machinery and equipment.

Machinery

Physical devices or equipment designed to perform specific tasks in industrial or commercial settings, often part of the fixed assets of a business.

Soft Rationing

The situation that occurs when units in a business are allocated a certain amount of financing for capital budgeting.