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

question 27

Essay

Read the description of following adjustments that are required at the end of the accounting period for Riley Furniture Restoration. Determine the account and amount to be debited and the account and amount to be credited.
A. Purchased supplies for $1,000 on June 1, 2013. Inventory of supplies was $300 on June 30, 2013. Record the adjustment for the amount of the supplies that were used during the month of June 2013.
B. Signed a 4-month contract for $1,200 of prepaid advertising on June 1, 2013. Record the adjustment for the amount of the advertising contract that expired during the month of June 2013.
C. Prepaid rent for the year on June 1, 2013. Rent expired during the month of June 2013, $700. Record the adjustment on June 30, 2013.
D. Depreciation is computed using the straight-line method. Equipment purchased on June 1, 2013, for $16,800 has an estimated useful life of 5 years with no salvage value. Record the adjustment on June 30, 2013.

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Definitions:

Service Mark

A trademark used in the United States to identify and protect the services provided by a business, rather than the goods it produces.

Brand Name

The distinctive title by which a product or company is known, often protected as a trademark.

Recognizable Logo

A distinctive graphic design, symbol, or emblem used to identify a company, brand, product, or service.

Trade Secrets

Information that is not known to the public and is protected by a company to maintain competitive advantages, such as recipes or manufacturing techniques.