Answer Happy

QS 3-7 (Algo) Adjusting prepaid (deferred) expenses LO P1 For each separate case, record the necessary adjusting entry. a. On July 1, Lopez Company paid $1,600 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. b. Zim Company has a Supplies account balance of $5,800 at the beginning of the year. During the year, it purchases $2,400 of supplies. As of December 31, a physical count of supplies shows $1,000 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31. No 1 Transaction 0. Advertising expense Accounts payable Accumulated depreciation Accounts receivable Answer is not complete. General Journal **** Debit 1,600 267 € Credit 1,600 267 Return to question