Chapter 3 - BE3-3 Correct. Windsor Advertising Companys...

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BE3-3
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Correct. Windsor Advertising Company’s trial balance at December 31 shows Advertising Supplies $6,700 and Advertising Supplies Expense $0. On December 31, there are $2,700 of supplies on hand. Prepare the adjusting entry at December 31. Date Description/Account Debit Credit Dec. 31 Advertising Supplies Expense 4000 Advertising Supplies 4000 Using T accounts, enter the balances in the accounts, post the adjusting entry, and indicate the adjusted balance in each account. Advertising Supplies 6700 12/31 4000 12/31 Bal. 2700 Advertising Supplies Expense 12/31 4000 BE3-4 Correct. At the end of its first year, the trial balance of Denton Company shows Equipment $30,000 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $5,000. Prepare the adjusting entry for depreciation at December 31. Date Description/Account Debit Credit Dec. 31 Depreciation Expense—Equipment 5,000 Accumulated Depreciation—Equipment 5,000 Post the adjustments to T accounts.
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Depr. Expense—Equipment 12/31 5,000 Accum. Depreciation—Equipment 12/31 5,000 Indicate the balance sheet presentation of the equipment at December 31. Balance Sheet:
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Chapter 3 - BE3-3 Correct. Windsor Advertising Companys...

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