Journalize the adjusting entry needed at December 31 for each situation. Use the Chart of Accounts to review account names! A two year insurance policy for $5,280 was purchased on November 1 of the current year. Record the transaction for the year ended December 31. Date Accounts and Explanation Debit Credit Dec. 31 Customers were billed for $3,000 for work completed. Date Accounts and Explanation Debit Credit Dec. 31 Accounts Receivable 3000 Service Revenue 300 Used office supplies of $2,800 Date Accounts and Explanation Debit Credit
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- The insurance policy is for 2 years (24 months) and costs $5,280. - Monthly insurance expense = $5,280 / 24 = $220. - The period from November 1 to December 31 is 2 months. - Insurance expense for 2 months = $220 * 2 = $440. Show more…
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