Accounting System Applications Accounting Review 7 Short Answer Exercise . What account categories are found on the income 1) statement? 2) 2. What account categories are found on the balance sheet? 1) 2) 3) 3. On January 1 of the current year, NSC Company paid $2,400 for a two-year insurance policy. This company’s fiscal period is from January 1 to December 31. Draft the adjusting entry necessary to recognize the insurance that has been used up at the end of the fiscal period. Account Debit Credit 4. On July 1 of the current year, NSC Company received an advanced payment of $6,000 for work to be performed over the next 20 months. This company’s fiscal period is from January 1 to December 31. Record the adjusting entry necessary on December 31 to recognize Fees Earned. Account Debit Credit 5. On January 1 of the current year, the Office Supplies account had a balance of $300; $2,600 of office supplies were purchased during the year; and the December 31 physical count of office supplies revealed $450 of office supplies remaining. This company’s fiscal period is from January 1 to December 31. Draft the journal entry to record the adjustment for supplies. Account Debit Credit 6. NSC Company uses the straight-line method of calculating depreciation. Equipment worth $150,000 was purchased at the beginning of this year. The equipment is expected to have a life of 5 years and a salvage value of $25,000. This company’s fiscal period is from January 1 to December 31. Draft the journal entry to record the adjustment for depreciation. Account Debit Credit
Accounting System Applications Accounting Review 7 Short Answer Exercise . What account categories are found on the income statement? 1) 2) 2. What account categories are found on the balance sheet? 1) 2) 3) 3. On January 1 of the current year, NSC Company paid $2,400 for a two-year insurance policy. This company’s fiscal period is from January 1 to December 31. Draft the adjusting entry necessary to recognize the insurance that has been used up at the end of the fiscal period. Account Debit Credit 4. On July 1 of the current year, NSC Company received an advanced payment of $6,000 for work to be performed over the next 20 months. This company’s fiscal period is from January 1 to December 31. Record the adjusting entry necessary on December 31 to recognize Fees Earned. Account Debit Credit 5. On January 1 of the current year, the Office Supplies account had a balance of $300; $2,600 of office supplies were purchased during the year; and the December 31 physical count of office supplies revealed $450 of office supplies remaining. This company’s fiscal period is from January 1 to December 31. Draft the journal entry to record the adjustment for supplies. Account Debit Credit 6. NSC Company uses the straight-line method of calculating depreciation. Equipment worth $150,000 was purchased at the beginning of this year. The equipment is expected to have a life of 5 years and a salvage value of $25,000. This company’s fiscal period is from January 1 to December 31. Draft the journal entry to record the adjustment for depreciation. Account Debit Credit