1. Let’s Practice

2. But First… 1.

3. 3. The Supplies account has a year-end debit balance of $2018
3. The Supplies account has a year-end debit balance of $2018. As part of the year-end procedures, the senior accountant asks the office staff to count the supplies. Their results are listed on the inventory sheet shown below. Figure out the actual value of the Supplies Account and make T- Account entries for it.

4. 4. A one-year insurance policy was purchased on August 1, 20-1, for $ A. Calculate the value of the prepaid insurance for this policy as of December 31, B. Calculate the portion of the cost of this insurance policy to be charged as an expense to each of the years ended December 31, 20-1, and December 31, 20-2.

5. 5. For each of the following insurance policies, perform the required calculations. A. Calculate the value of the prepaid insurance at the year-end date shown . B. Prepare the adjusting journal entry for the year-end shown.

6. Section 8.2 Review 1.
Using the information shown below (page 288), complete the worksheet. Prepare an income statement and balance sheet.
After taking inventory, the value of the supplies on hand at the end of the year was 700 dollars. 2. The prepaid insurance balance of 1668 was the original cost of the insurance on August 1, Late-arriving invoices pertaining to the 20-4 year were (Car expense $275, General Expense $200 [Total 475])

7. Section 8.2 Review 2.
Use the following information to finish the worksheet. B. Prepare an income statement and classified balance sheet. C. The owner has a large capital account, yet this past year presented problems. Explain to the owner some of the difficulties he is facing. Additional information: 1. Value of the supplies at hand was actually $950
2. The prepaid insurance at the end of the year was figured to be $680.
3. A customer paid $2000 on December 27th for work to be done in January The clerk originally credited Fees Earned for the $ Late arriving invoices pertaining to the 20-4 fiscal period were (Car expense $150, Misc. expense 50, Utilities expense, 315, for a total of 515)