Question: Recording Adjusting Journal Entries Refer to E4-5.
Required: Prepare adjusting journal entries at December 31, 2009, for ( a) insurance and ( b) shipping supplies.
E4-5: Determining Adjustments and Accounting Equation Effects Mary Fes, owner of Fes Company, has hired you to help with the accounting entries at the end of the year on December 31, 2009. In developing information for the adjusting journal entries, you learned the following:
a. A two-year insurance premium of $7,200 was paid on January 1, 2009, for coverage beginning on that date. As of December 31, 2009, the unadjusted balances were $7,200 for Prepaid Insurance and $0 for Insurance Expense.
b. At December 31, 2009, you obtained the following data relating to shipping supplies.