Read Each of the Following Transactions for Patel's Repair Services

question 46

Short Answer

Read each of the following transactions for Patel's Repair Services. Determine the accounts and amounts to be debited and credited in the necessary end-of-May adjustments.
A. On May 1, 2019, Patel's Repair Services, a new firm, paid $6,600 rent in advance for a six-month period. The $6,600 was debited to the Prepaid Rent account.
B. On May 1, 2019, the firm bought supplies for $2,000. The $2,000 was debited to the Supplies account. An inventory of supplies at the end of May showed that supplies costing $800 were on hand.
C. On May 1, 2019, the firm bought equipment costing $12,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.

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Definitions:

Prenatal Developmental

The process of growth and development that occurs within the womb from conception until birth.

Spontaneously Aborted

Refers to a pregnancy that ends on its own, without medical intervention, usually within the first 20 weeks of gestation.

Birth Defects

Are significant abnormalities of structure, function, or body metabolism present at birth that lead to physical or mental disabilities or are fatal.

Sudden Infant Death Syndrome

An unexplained fatal condition affecting infants typically during sleep, with unknown cause despite thorough investigation.