Explanation:
The adjusting entries are as follows
1. Insurance expense A/c Dr $2,300
To Prepaid insurance A/c $2,300
(Being the insurance expense is recorded)
The computation is shown below:
= $2,300 ÷ 6 months × 6 months
= $2,300
2. Supplies expense A/c Dr $8,950
To Supplies A/c $8,950
(Being supplies account is adjusted)
The supplies expense is computed by
= Supplies opening balance + purchase made - supplies on hand
= $7,200 + $3,100 - $1,350
= $8,950
