Debit Credit $ 13,600 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment 3,440 37,760 $ 9,440 Unearned Revenue 9,200 Notes Payable 28,800 Rent Revenue 29,800 Salaries Expense 13,600 An analysis of the accounts shows the following: 1. The equipment has a four-year useful life. 2. One-quarter of the unearned rent is still unearned on March 31, 2021. 3. The note payable has an interest rate of 4%. Interest is paid every June 30 4. Supplies on hand at March 31 total $ 760. 5. The one-year insurance policy was purchased on January 1, 2021. 6. As at March 31, a tenant owed Bourque $ 600 for the month of March.
Debit Credit $ 13,600 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment 3,440 37,760 $ 9,440 Unearned Revenue 9,200 Notes Payable 28,800 Rent Revenue 29,800 Salaries Expense 13,600 An analysis of the accounts shows the following: 1. The equipment has a four-year useful life. 2. One-quarter of the unearned rent is still unearned on March 31, 2021. 3. The note payable has an interest rate of 4%. Interest is paid every June 30 4. Supplies on hand at March 31 total $ 760. 5. The one-year insurance policy was purchased on January 1, 2021. 6. As at March 31, a tenant owed Bourque $ 600 for the month of March.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 1PB: Consider the following situations and determine (1) which type of liability should be recognized...
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