My Company had the following transactions during its first month of operations:

Dec 2	Purchased $14,000 of furniture on account for the office.
Dec 3	Purchased $1,700 of supplies on account.
Dec 5	Purchased a one year insurance policy for $2,700.

 

On December 31, the following adjustments must be made:

• The furniture, which has no salvage value and a 60-month (or 5 year) useful life, needs to be depreciated for ONE MONTH using straight-line depreciation (Hint: Cost - Salvage / useful life in months). 
• A physical count shows only $1,150  of supplies remains in the storage closet.
• One month of the 1-year insurance policy has been used.

Prepare adjusting entries required.  

Journal

Date	Description	Debit	Credit
Dec 31
Dec 31