A (Click the icon to view the situations.) Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries. (Record debits first, then credits. Select the explanation on the last line of the jourmal entry table.) a. On October 1, a business collected $3,000 rent in advance, debiting Cash and crediting Uneamed Revenue. The tenant was paying one year's rent in advance. At December 31, the business must account for the amount of rent it has earned. Date Accounts and Explanation Debit Credit (a) Dec. 31 Rent Revenue 750 More info Uneamed Revenue 750 a. On October 1, a business collected $3,000 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. On December 31, the business must account for the amount of rent it has eamed. b. Salaries expense is $1,800 per day-Monday through Friday-and the business pays employees each Friday. This year December c. The unadjusted balance of the Office Supplies account is $3,000. Office supplies on hand total $1,900. I falls on a Thursday. d. Equipment depreciation was $500. e. On April 1, when the business prepaid $4,320 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash.
A (Click the icon to view the situations.) Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries. (Record debits first, then credits. Select the explanation on the last line of the jourmal entry table.) a. On October 1, a business collected $3,000 rent in advance, debiting Cash and crediting Uneamed Revenue. The tenant was paying one year's rent in advance. At December 31, the business must account for the amount of rent it has earned. Date Accounts and Explanation Debit Credit (a) Dec. 31 Rent Revenue 750 More info Uneamed Revenue 750 a. On October 1, a business collected $3,000 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. On December 31, the business must account for the amount of rent it has eamed. b. Salaries expense is $1,800 per day-Monday through Friday-and the business pays employees each Friday. This year December c. The unadjusted balance of the Office Supplies account is $3,000. Office supplies on hand total $1,900. I falls on a Thursday. d. Equipment depreciation was $500. e. On April 1, when the business prepaid $4,320 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries
Section: Chapter Questions
Problem 2AP
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Question
Need help with A-E the questions is on picture thank you
Transcribed Image Text:Accounts and Explanation
Rent Revenue
Accounts Receivable
Accumulated Depreciation-Equipment
Cash
Depreciation Expense-Equipment
Insurance Expense
Interest Expense
Interest Payable
Office Supplies
Prepaid Insurance
Rent Revenue
Salaries Expense
Salaries Payable
Supplies Expense
Unearned Revenue
Transcribed Image Text:Consider the following independent situations at December 31:
A (Click the icon to view the situations.)
Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
a. On October 1, a business collected $3,000 rent in advance, debiting Cash and crediting Uneamed Revenue. The tenant was paying one year's rent in advance. At December 31, the business must account for the amount of rent it has earned.
Date
Accounts and Explanation
Debit
Credit
- X
(a) Dec. 31
Rent Revenue
750
More info
Unearned Revenue
750
On October 1, a business collected $3,000 rent in advance, debiting Cash and crediting
Unearned Revenue. The tenant was paying one year's rent in advance. On December 31, the
business must account for the amount of rent it has earned.
b. Salaries expense is $1,800 per day-Monday through Friday-and the business pays
employees each Friday. This year December 31 falls on a Thursday.
The unadjusted balance of the Office Supplies account is $3,000. Office supplies on hand total
$1,900
a.
C.
d. Equipment depreciation was $500.
On April 1, when the business prepaid $4,320 for a two-year insurance policy, the business
debited Prepaid Insurance and credited Cash.
e.
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Expert Solution
Step 1
Adjusting entries are prepared by the management at the end of the accounting year. It is used to ensure the accrual base accounting system.
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