The following information for Station
Products is available on June 30, 2014, the end of a monthly accounting period.
Prepare the necessary adjusting journal entries for Station Products for the
month of June for each situation given. Adjusting entries are recorded at the
end of every quarter prior to the preparing financial statements. You may omit
journal entry explanations.
A. Station purchased a 1-year
insurance policy on June 1, 2014, and debited an asset account for $3,600.
B. On May 1, 2014, a tenant in an
office building owned by Station Products paid $6,600, which represents three
months' rent in advance. The amount received was credited to the Unearned Rent
June 1, 2014, the balance in the Supplies account was $420. During June, office
supplies costing $840 were purchased and half was paid in cash, with the
balance on account. A physical count of office supplies at June 30 revealed
that there was $125 of supplies still on hand.
D. On March 31, 2014, Station
Products purchased equipment for $30,000. The company calculated annual depreciation
to be $6,000.
E. Station Products has 7
employees who earn $120 per day, and 3 employees who earn $200 per day,
respectively. Employees are paid each Friday for a five-day work week that
begins each Monday. June 30 is a Thursday.