Task: Dakota Company must make three adjusng entries on December 31, 2007.
1) Supplies used, $2,500; (supplies totaling $4,000 were purchased on December 1, 2007, and debited to the supplies account).
2) Expird insurance, $1,800 on December 1, 2007; the fir paid $10,800 for six months' insurance coveage in advance and debited Prepaid Insurance fr this amount.
3) Depreciation expense for equipment $1,200.
Make the journal entries for these adjustments and post the entries to the general ledger accounts. Use page of the general journal for the adjusting entries. Use the following accous and numbers.
Supplies 121
Prepaid Insurance 131
Accum. Depr.---Equip. 142
Depreciation Exp.---Equip. 517
Insurance Expense 521
Supplies Expense 523.