BE3-3, BE3-5, & BE3-6

BE3-3, BE3-5, & BE3-6 - contract. Both companies have...

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BE3-3 Gleason Advertising Company’s trial balance at December 31 shows Advertising Supplies 6,700 and Advertising Supplies Expense $0. On December 31, there is $1,700 of supplies on hand. Prepare the adjusting entry at December 31, and using T accounts, enter the balance in the accounts, post the adjusting entry, and indicate the adjusted balance in each account. Dec. 31 Advertising Supplies Expense………………………$5,000 Advertising Supplies (6,700-1,700)………………….$5,000 _______Advertising Supplies ______________________Advertising Supplies Expense _____________6,700- 12/31______5,000_____________12/31-______5,000________ 12/31________1,700_____________________________________________________ BE3-5 On July 1, 2006, Orlow co. pays $12,000 to Pizner Insurance Co. for a 3 year insurance
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Unformatted text preview: contract. Both companies have fiscal years ending December 31. For Orlow Co. journalize and post the entry on July and the adjusting entry on December 31. Prepare adjusting entry for prepaid expense. July 1 Prepaid expense 12,000 Cash 12,000 Dec. 31 Insurance expense 2,000 Prepaid expense 2,000 (12,000/36 months x 6=2,000) BE3-6 Using the data in BE3-5, journalize and post the entry on July 1 and the adjusting entry on December 31 for Pizner Insurance Co. Pizner uses the accounts Unearned Insurance Revenue and Insurance Revenue. July 1 Cash 12,000 Unearned Ins Revenue 12,000 Dec. 31 Unearned Ins Revenue 2,000 Insurance Revenue 2,000 (12,000/36 months x 6=2,000)...
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This note was uploaded on 05/18/2008 for the course ACC acc 362 taught by Professor Smith during the Spring '08 term at Art Inst. San Diego.

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