20. The balance in the Office Supplies account on July 1 was $4,000, supplies purchased and properly recorded during month were $2,500. What is the amount of the adjusting journal entry if the supplies on hand at July 31 are $2,800. a. $1,500 b. $2,800 c. $4,000 d. $3,700 21. What Prepaid Insurance account balance before adjustment of $15,000 and an analysis of insurance policies arrived at the unexpired insurance amount of $3,500. is the proper adjusting entry on December 31, the end of the fiscal year, based on a a. debit Insurance Expense $3,500 credit Prepaid Insurance $3,500 b. debit Insurance Expense $11,500 credit Prepaid Insurance $11,500 c. debit Prepaid Insurance $3,500 credit Insurance Expense $3,500 d. debit Prepaid Insurance $15,000 credit Insurance Expense $15.000 22. estima What is the amount of the first year\'s depreciation expense using the straight-line method? Company purchased a delivery van for $40,000 on the first day of the year. The dual value for the van is $8,000 and has an estimated useful life of 8 years. a. $4,500 b. $5,000 c. $6,000 d. $4,000 23 What adjusting entry is required at the end of December 31, 2017? ompany prepaid an annual insurance policy on December 1,2017 for $2,400. a. debit Prepaid Insurance $2,400 credit Insurance Expense $2,400 b. debit Insurance expense $2,400 credit Prepaid Insurance $2,400 c. debit Insurance expense $1,200 credit Prepaid Insurance $1,200 d. debit Insurance expense $200 credit Prepaid Insurance $200 24. The worksheet is prepared to assist in a. preparation of financial statements. b. recording adjusting entries. c. recording closing entries. d. all of the above.
20. The answer is D
21. B - Debit Insurance Expenses $11,500 Credit Prepaid Insurance $ 11,500
The expired portion (15000-3500= 11500) will be expensed off in the income statement and the balance of unexpired insurance of 3500 will continue in the balance sheet as prepaid insurance.
22. D - $4,000
23. The answer is D- Debit Insurance Expenses 200 Credit Prepaid Insurance $200.
The expired portion (2400/12*1 = 200 ) will be expensed off in the income statement and the balance of unexpired insurance of $2200 will continue in the balance sheet as prepaid insurance.
24. the answer is b.
The Worksheet is prepared to record the adjusting entries which helps in preparation of the Financial statement.
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| Beginning Balance | $ 4,000 |
| Purchases | $ 2,500 |
| Ending Balance | $ (2,800) |
| Consumed | $ 3,700 |
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