On June 1, 20X1, Conner Company, a new firm, paid $4,300 rent in advance for a five-month period. The $4,300 was debited to the Prepaid Rent account. On June 1, 20X1, the firm bought supplies for $7,250. The $7,250 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $2,950 were on hand. On June 1, 20X1, the firm bought equipment costing $44,160. The equipment has an expected useful life of 8 years and no salvage value. The firm will use the straight-line method of depreciation. Prepare end-of-June adjusting entries for Conner Company.

No    Account and explanation              Debit      Credit

1.       Rent expense ($4,300/5)               $860

                Prepaid rent                                           $860

        (To record adjusted rent expense)

2.      Supplies expense (7,250-2,950)   $4,300

                Supplies                                                   $4,300

        (To record adjusted supplies)

3.       Depreciation expense                   $460

         [(44,160/8)/12]

                Accumulated depreciation                     $460

         (To record depreciation)

the correct answer is:

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the divergent