Prepare the required adjusting entry for each situation as of December 31, 2018 for (SBAD) Company. Suppose company had received a $1,800 shipment of supplies in October When counting the supplies on December 31, 2018,  found only $500 worth of supplies on hand.  Suppose (SBAD) had paid $12,000 for six months’ rent on September 1, 2018.  Suppose (SBAD) had paid $6,000 for one year’s insurance on December 1, 2018. The (SBAD) company borrowed $12,000 from a local bank with 10% annual interest rate on August 1, 2018. Principal and interest will be paid on July, 31, 2019 The (SBAD) company calculated its income taxes as $40,000 for the year ended December 31, 2018.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Prepare the required adjusting entry for each situation as of December 31, 2018 for

(SBAD) Company.

  • Suppose company had received a $1,800 shipment of supplies in October When counting the supplies on December 31, 2018,  found only $500 worth of supplies on hand. 
  • Suppose (SBAD) had paid $12,000 for six months’ rent on September 1, 2018. 
  • Suppose (SBAD) had paid $6,000 for one year’s insurance on December 1, 2018.
  • The (SBAD) company borrowed $12,000 from a local bank with 10% annual interest rate on August 1, 2018. Principal and interest will be paid on July, 31, 2019
  • The (SBAD) company calculated its income taxes as $40,000 for the year ended December 31, 2018.
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