At Richmond Company, prepayments are debited to expense when paid, and unearned revenues are credited to revenue when received. During January of the current year, the following transactions occurred.
|
Jan. |
2 |
Paid $1,920 for fi re insurance protection for the year. |
|
10 |
Paid $1,700 for supplies. |
|
|
15 |
Received $6,100 for services to be performed in the future. |
On January 31, it is determined that $2,500 of the services are earned and that there are $650 of supplies on hand.
Instructions
(a) Journalize and post the January transactions. (Use T accounts.)
(b) Journalize and post the adjusting entries at January 31.
(c) Determine the ending balance in each of the accounts.