Accounting for P r epayments and Capital Assets Required Prepare journal entries for Iron 1 answer below »

 
   

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Accounting for P r epayments and Capital Assets

Required

Prepare journal entries for Iron City’s general fund for the following, including any adjusting and

closing entries on December 31, 20X1:

a. Acquired a three-year fire insurance policy for $5,400 on September 1, 20X1.

b . Ordered new furniture for the city council meeting room on September 17, 20X1, at an esti-

mated cost of $15,600. The furniture was delivered on October 1; its actual cost was $15,200,

its estimated life is 10 years, and it has no residual value.

c. Acquired supplies on November 4, 20X1, for $1,800. Iron City uses the consumption method of accounting. Supplies on hand on December 31, 20X1, were $1,120.