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2 September, 14:49

Depreciation on the company's equipment for 2017 is computed to be $13,000. The prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies showed that $540 of unexpired insurance coverage remains. The office supplies account had a $420 debit balance on december 31, 2016; and $2,680 of office supplies were purchased during the year. The december 31, 2017, physical count showed $496 of supplies available. One-third of the work related to $15,000 of cash received in advance was performed this period. The prepaid insurance account had a $5,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $4,460 of coverage had expired. Wage expenses of $3,000 have been incurred but are not paid as of december 31, 2017.

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  1. 2 September, 15:15
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    Depreciation Expense ... Dr $13000

    To Accumulated Depreciation ... $13000

    (Being Depreciation Expense recorded)

    Insurance Expense ... Dr $5460

    To Prepaid Insurance ... $5460

    (Being Insurance Expensed)

    Supplies Expenses ... Dr $ 2604

    To Supplies ... $2604

    (Being Supplies Consumed Expensed)

    Unearned Revenue ... Dr $5000

    To Service Revnue ... $5000

    (Being Revenue earned)

    Insurance Expense ... Dr $4460

    To Prepaid Insurance ... $ 4460

    (Being insurance expensed)

    Wages Expense ... Dr $3000

    To Wages Payable ... $3000

    (Being Wages Expense incurred)
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