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College Accounting
John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College
The General Ledger and Financial Statements

Demonstration Problems

Record the following adjustments for the Chick Stautz Company using the information below as of January 31, 20X7.

  1. Supplies used during the month, $ 675.
  2. The Prepaid Insurance Account shows an amount of $ 24000 represents a payment made on January 1 for one year of insurance coverage.
  3. The equipment costing $ 16800, purchased on January1, 20X7, has an estimated useful life of 10 years with no salvage value. The firm uses a straight-line method of amortization.

Instructions:
Post the adjustments to the General Journal, omit explanations.

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