Read the Description of Following Adjustments That Are Required at the End

question 66

Essay

Read the description of following adjustments that are required at the end of the accounting period for AAA Appliance Repair Services. Record the necessary adjusting entries required at the end of January on page 2 of a general journal. Omit the descriptions.
A. Prepaid rent for the year on January 1, 2019. Rent expired during the month of January 2019,
$2,000.
B. Purchased supplies for $7,600 on January 1, 2019. Inventory of supplies was $1,600 on January 31, 2019.
C. Depreciation is computed using the straight-line method. Equipment purchased on January 1, 2019, for $15,000 has an estimated useful life of 5 years with no salvage value.
D. Signed a 3-month contract for $600 of prepaid advertising on January 1, 2019.

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Definitions:

Cognitive Functioning

Refers to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Neurons

Basic working units of the brain, specialized cells designed to transmit information to other nerve cells, muscle, or gland cells.

Ganglions

Refers to swellings or cysts that commonly develop along the tendons or joints of the wrists or hands, often filled with a jelly-like fluid.

Adrenal Glands

Small glands located above the kidneys that produce a variety of hormones, including adrenaline and cortisol, which regulate metabolism, immune system, blood pressure, and response to stress.