The Purification Company is a consulting firm specializing in pollution control. The following adjustments were made for The Purification Company:
|
|
Adjustments |
|
Account |
Increase (Decrease) |
|
Accounts Receivable |
$ 5,100 |
|
Supplies |
(1,225) |
|
Prepaid Insurance |
(1,000) |
|
Accumulated Depreciation—Equipment |
1,800 |
|
Wages Payable |
900 |
|
Unearned Rent |
(2,500) |
|
Fees Earned |
5,100 |
|
Wages Expense |
900 |
|
Supplies Expense |
1,225 |
|
Rent Revenue |
2,500 |
|
Insurance Expense |
1,000 |
|
Depreciation Expense |
1,800 |
Identify each of the six pairs of adjustments. For each adjustment, indicate the account, whether the account is increased or decreased, and the amount of the adjustment. No account is affected by more than one adjustment. Use the following format. The first adjustment is shown as an example.
|
Adjustment |
Account |
Increase or Decrease |
Amount |
|
1. |
Accounts Receivable |
Increase |
$5,100 |
|
|
Fees Earned |
Increase |
5,100 |