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:

Guttmacher Institute

A leading research and policy organization committed to advancing sexual and reproductive health and rights through research, policy analysis, and public education.

Reversible Contraception

Birth control methods that can be discontinued, allowing for the return of fertility.

Latex Allergy

An allergic reaction to certain proteins found in natural rubber latex, leading to symptoms ranging from skin irritation to severe respiratory issues.

Condom Usage

The practice of using condoms as a contraceptive method and to reduce the risk of sexually transmitted infections.