Dakota Company must make three adjusng entries on December 31, 2007.
a. Supplies used, $2,500; (supplies totaling $4,000 were purchased on December 1, 2007, and debited to the supplies account).
b. 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.
c. Depreciation expense for equipment $1,200.
Depreciation Exp.---Equip. 517
Insurance Expense 521
Supplies Expense 523
This formatted MS Excel spreadsheet contains examples of journalizing entries and the posting of subsequent adjustments.