Question

Q3) Zac Brown Company has the following balances in selected accounts on December 31, 2017.

Service Revenue $40,000

Insurance Expense 2,700

Supplies Expense 2,450

All the accounts have normal balances. Zac Brown Company debits prepayments to expense accounts when

paid, and credits unearned revenues to revenue accounts when received. The following information below

has been gathered at December 31, 2017.

1. Zac Brown Company paid $2,700 for 12 months of insurance coverage on June 1, 2017.

2. On December 1, 2017, Zac Brown Company collected $40,000 for consulting services to

be performed from December 1, 2017, through March 31, 2018.

3. A count of supplies on December 31, 2017, indicates that supplies of $900 are on hand.

Instructions

Prepare the adjusting entries needed at December 31, 2017.​

Answer 1

why your questions ??? SO