Jenning Co adjusts its books each month but closes its books at the end of the year. The trial balance at July 31 before adjustments is as follows: Debit Credit Cash $12,920 Accounts Receivable 9,620 Supplies 1,400 Prepaid Insurance 3,120 Equipment 26,000 Accumulated Depreciation—Equipment $10,400 Unearned Service Revenue 6,500 Capital Stock 7,190 Retained Earnings 23,500 Dividends 1,560
Service Revenue 16,510 Wages and Salaries Expense 7,800 Utilities Expense 380 Rent Expense 1,300 $64,100 $64,100 Refer to the trial balance of Jenning Co On July 1, Tracy paid four months in advance for insurance. Which of the following is included in the adjusting entry at July 31?
a. A debit to Prepaid Insurance for $780
b. A credit to Prepaid Insurance for $2,340
c. A debit to Prepaid Insurance for $2,340
d. A credit to Prepaid Insurance for $780
d
You might also like to view...
When examining competitors for the IMC planning process, it is essential to identify domestic competitors, but not foreign or international competitors
Indicate whether the statement is true or false
The credit portion of an adjusting entry to enter the estimate for uncollectible accounts can be made directly to a specific receivable account
a. True b. False Indicate whether the statement is true or false
According to theorists James O’Toole and Warren Bennis, what long-held metric for manager success needs to be updated?
a. providing quality goods or services for the market b. ensuring strict discipline c. creating wealth for shareholders d. preventing company collapse
The PEG ratio is calculated by dividing the book value per share by its estimated growth in sales
Indicate whether the statement is true or false