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January 26, 2023

Prepare adjusting entries for Martin Ltd as at 30 June for the following situations: (a) The Supplies account shows a balance of $1000, but a physical count shows only

Prepare adjusting entries for Martin Ltd as at 30 June for the following situations:
(a) The Supplies account shows a balance of $1000, but a physical count shows only $400 if supplies.
(b) The company purchased a 1-year insurance policy for $6000 on 1 May, debiting Prepaid Insurance.
(c) Martin Ltd pays employees $2500 per 5 day working week, and 30 June falls on a Wednesday.
(d) The company owns a van that cost $18,000 and has a useful life of 6 years (no residual value). The company purchased the van in early April this year.

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