Sunkan Company prepares monthly financial statements. Below are listed some sele

Question

Sunkan Company prepares monthly financial statements. Below are listed some selected accounts and their balances on the September 30 trial balance before any adjustments have been made for the month of September. SUNKAN COMPANY Trial Balance (Selected Accounts) September 30, 2017 Debit Credit Supplies. Prepaid Insurance Equipment Accumulated Depreciation-Equipmnt Unearned Rent Revenue $2.700 4,800 16,200 $1,000 (Note: Debit column does not equal credit column because this is a partial listing of selected account balances. is of the account accountant provided the following additional information com 1. A physical count of office supplies revealed $1,000 on hand on September 30. 2. A two-year life insurance policy was purchased on September 1 for $4,800. 3. Office equipment depreciates $3,000 per year 4· The amount of rent received in advance that remains unearned at September 30 is so. Instructions: Using the information given, prepare the adjusting entries that should be made by Sunkan Company on September 30

Explanation / Answer

1 Supplies expense 1700 =2700-1000        Supplies 1700 2 Insurance expense 200 =4800/24*1          Prepaid insurance 200 3 Depreciation expense 250 =3000/12        Accumulated depreciation-Equipment 250 4 Unearned rent revenue 900 =1200-300        Rent revenue 900

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