On January 15, 2020, Dolan Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2024, at an estimated cost of $8,000,000. Dolan plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2020. Future value factors are as follows: Dolan should make four annual deposits ofA. $2,000,000 B. $1,567,060 C. $1,723,766. D. 54,967,401

Answer and Explanation:

The adjusting entries are shown below:

a. Supplies Expense Dr ($2,750 - $600) $2,150

         To Supplies $2,150

(being supplies expense is recorded)

Here supplies expense is debited as it increased the expense and credited the supplies as it decreased the assets

b. Depreciation expense $1,600

              To Accumulated depreciation $1,600

(being depreciation expense is recorded)

Here depreciation expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets