Question - Scotsman Company prepares monthly financial statements. Below are listed sonic selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the month of September.
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SCOTSMAN COMPANY Trial Balance (Selected Accounts) September 30, 2017
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Debit (amount in thousands)
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Credit (amount in thousands)
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Prepaid insurance
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$3,150
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Supplies
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2,700
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Office equipment
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16,200
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Accumulated depreciation-equipment
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1,000
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Unearned rent revenue
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1,200
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(Note: Debit column does not equal credit column because this is a pankd listing of selected account balances)
An analysis of the account balances by the company's accountant provided the following additional information:
1. A physical count of office supplies revealed £800 on hand on September 30.
2. A two-year lift insurance policy was purchased on June 1 for £3,600.
3. Office equipment depreciated £3,000 per year.
4. The amount of rent received in advance that remains unearned at September 30 is £400.
Instructions - Using the above additional information, prepare the adjusting entries that should be made by Scotsman Company on September 30.