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soom_91
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Determine the necessary end-of-June adjustments for Evenson Company.
1.On June 1,2010, Evenson Company, a new firm,paid$4,500 rent in advance for a six-month period. The $4,500 was debited to the Prepaid Rent account.
2. On June1,2010, the firm bought supplies for $4,750. The $4,750 was debited to the Supplies account. An inventory of supplies at the end of June showed that the items costing $1,800 were on hand.
3. On June 1, 2010, the firm bought equipment costing $54,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.
1.On June 1,2010, Evenson Company, a new firm,paid$4,500 rent in advance for a six-month period. The $4,500 was debited to the Prepaid Rent account.
2. On June1,2010, the firm bought supplies for $4,750. The $4,750 was debited to the Supplies account. An inventory of supplies at the end of June showed that the items costing $1,800 were on hand.
3. On June 1, 2010, the firm bought equipment costing $54,000. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation.