Adjusting entries in the General Journal
In 2020 your friend Kent started a moving company, Kent’s Moving Co. He hired a bookkeeper to journalize all the business transactions that occurred for the year, and she posted those entries to the General Ledger as well. The bookkeeper has recently quit, and Kent has no knowledge of accounting and asked you to help him with the adjustment process for December 31, 2020. He has provided you with the balances for each account in his General Ledger. You will need to complete:
1) Adjusting entries in the General Journal
Insurance was paid $2400 for the year, adjust the monthly cost for December.
Moving supplies started with $1600 at the beginning of the month of December and ended with $1100 as the ending balance on 12/31/20.
December’s depreciation expense for the moving truck was $450.
Wages earned but not paid until the first paycheck in 2021, $275.