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Instructions
Prepare the annual adjusting entries needed at December 31, 2020.
* $3 . 20 ( 1.0 5) Vissar Foods has the following balances in selected accounts on December 31 ,2020 .Journalize adjusting entries .Service Revenue$ 40 , 000Insurance Expense2 , 400Supplies Expense2 , 450All the accounts have normal balances . Vissar Foods debits prepayments to expense accountswhen paid , and credits unearned revenues to revenue accounts when received . The following*information below has been gathered at December 31 , 2020 .1 . Vissar Foods paid E’2 , 400 for 12 months of insurance coverage on June 1 , 2020 .2 . On December 1 , 2020 , Vissar collected $ 40, 000 for consultulting services to be performedfrom December 1 , 2020 , through March 31 , 2021 .3 . A count of supplies on December 31 , 2020 , indicates that supplies of EGoo are on hand .InstructionsPrepare the annual adjusting entries needed at December 31 , 2020 .
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