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

question 13

Essay

Read the description of following adjustments that are required at the end of the accounting period for River Front Repair. Record the necessary adjusting entries on page 2 of a general journal. Omit the descriptions.
A. Prepaid rent for the year on January 1, 2013. Rent expired during the month of January, $7,200.
B. Equipment purchased on January 1, 2013, for $8,100 has an estimated useful life of 5 years with no salvage value. Depreciation is computed using the straight-line method.
C. Purchased supplies for $650 on January 1, 2013. Inventory of supplies was $100 on January 31, 2013.
D. Signed a 12-month contract for $4,800 of prepaid advertising on January 1, 2013.

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Definitions:

Diabetes

A chronic condition where the body either does not produce enough insulin or cannot effectively use the insulin it produces, leading to high levels of glucose in the blood.

Critical Thinking

A logical, rational, systematic thought process that is necessary to understand, analyze, and evaluate information in order to solve a problem or situation.

Heavy Drinking

The consumption of large quantities of alcohol in a short period, often leading to health risks and social problems.

Sleep Disturbance

Disruptions in the normal sleep cycle, which can include difficulties in falling asleep, staying asleep, or experiencing restful sleep.