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(Solved): Atlantic Company is completing adjusting entries at the end of the annual accounting period. Decemb ...




Atlantic Company is completing adjusting entries at the end of the annual accounting period. December 31, 20X1. Four adjustin
Atlantic Company is completing adjusting entries at the end of the annual accounting period. December 31, 20X1. Four adjusting entries must be made at this date to update the accounts. The following accounts, selected from Atlantic's chart of accounts, are to be used for this purpose. They are coded below for easy reference. Below are the four adjusting entries: 1. On January 1. 20X1. equipment was purchased for \( \$ 6,000 \). The equipment had an estimated useful lfe of five years with no residual value. It is depreciated using the straight-line method. Record depreciation. 2. On November \( 1,20 \times 1 \), collected \( \$ 1,800 \) rent revenue in advance for some warehouse space temporarily rented to a customer (credted in ful to Unearned Rent). The rent was colected for November, December, and January. 3. Office supplies purchased during \( 20 \times 1 \) amounted to \( \$ 400 \) which was debited in ful to office supplies during the year. The year-end inventory count of office supplies showed \( \$ 100 \) of supples on hand. The begining inventory of office supplies was 5150 . 4. On November 1, 20X1, the company signed a \( \$ 6,000 \) interest bearing note payable.


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For the given transactions, following are the adjusting entries for the period of Decem
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