Read Each of the Following Transactions for Gallagher Enterprises

question 79

Essay

Read each of the following transactions for Gallagher Enterprises. Determine the accounts and amounts to be debited and credited in the necessary end-of-January adjustments.
A. On January 1, 2013, Gallagher Enterprises, a new firm, paid $6,000 rent in advance for a three-month period. The $6,000 was debited to the Prepaid Rent account.
B. On January 1, 2013, the firm bought supplies for $3,000. The $3,000 was debited to the Supplies account. An inventory of supplies at the end of June showed that supplies costing $1,000 were on hand.
C. On January 1, 2013, 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:

Employee Involvement Programs

Programs designed to encourage employees to contribute their ideas and participate in decision-making processes within the organization.

Organizational Citizenship Behavior

Voluntary, discretionary behaviors exhibited by employees that are not directly recognized by the formal reward system but contribute to organizational effectiveness.

Collective Performance

Refers to the aggregated or combined outcomes and achievements of a group or team working together towards common objectives.

Power of Earning

The capacity to generate income or wealth through work, investments, or other economic activities.