3-21A. (Learning Objective 3: Adjust the accounts) Jenkins Rentals Company faced the following situations. Journalize the adjusting entry needed at December 31, 2020, for each situation. Consider each fact separately. a. The business has interest expense of $3,100 that it must pay early in January 2021. b. Interest revenue of $4,400 has been earned but not yet received. c. On July 1, 2020, when the business collected $14,200 rent in advance, it debited Cash and credited Unearned Rent Revenue. The tenant was paying for two years' rent. d. Salary expense is $5,700 per day-Monday through Friday-and the business pays employees each Friday. This year, December 31 falls on a Thursday. e. The unadjusted balance of the Supplies account is $3,100. The total cost of supplies on hand is $1,200. f Eguinment was purchased on lanuary 1 of this vear at a cost of S140.000 The eguinment's useful life is

3-21A. (Learning Objective 3: Adjust the accounts) Jenkins Rentals Company faced the following situations. Journalize the adjusting entry needed at December 31, 2020, for each situation. Consider each fact separately. a. The business has interest expense of $3,100 that it must pay early in January 2021. b. Interest revenue of $4,400 has been earned but not yet received. c. On July 1, 2020, when the business collected $14,200 rent in advance, it debited Cash and credited Unearned Rent Revenue. The tenant was paying for two years' rent. d. Salary expense is $5,700 per day-Monday through Friday-and the business pays employees each Friday. This year, December 31 falls on a Thursday. e. The unadjusted balance of the Supplies account is $3,100. The total cost of supplies on hand is $1,200. f Eguinment was purchased on lanuary 1 of this vear at a cost of S140.000 The eguinment's useful life is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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3-21A. (Learning Objective 3: Adjust the accounts) Jenkins Rentals Company faced thefollowing situations. Journalize the adjusting entry needed at December 31, 2020, for eachsituation. Consider each fact separately.a. The business has interest expense of $3,100 that it must pay early in January 2021.b. Interest revenue of $4,400 has been earned but not yet received.c. On July 1, 2020, when the business collected $14,200 rent in advance, it debited Cashand credited Unearned Rent Revenue. The tenant was paying for two years’ rent.d. Salary expense is $5,700 per day—Monday through Friday—and the business paysemployees each Friday. This year, December 31 falls on a Thursday.e. The unadjusted balance of the Supplies account is $3,100. The total cost of supplies onhand is $1,200.f. Equipment was purchased on January 1 of this year at a cost of $140,000. The equipment’s useful life is five years. There is no residual value. Record depreciation for thisyear and then determine the equipment’s…