Dr. Erica Chan, MD owns EC Health Clinic. She prepares annual financial statements and has a December 31, 2020 year-end. o. On October 1, 2020, Dr. Chan prepaid $8.000 for four months of rent. b. On November 1, 2020, Dr. Chan prepaid $480 to renew the clinic's magazine subscriptions. The subscription is for one year. c. On December 1, 2020, Dr. Chan pays $3,000 for supplies. At the end of the year, $2.000 of supplies had not been used. Required: For the above transactions, record the initial journal entry and the adjusting entry required on December 31. 2020.
Dr. Erica Chan, MD owns EC Health Clinic. She prepares annual financial statements and has a December 31, 2020 year-end. o. On October 1, 2020, Dr. Chan prepaid $8.000 for four months of rent. b. On November 1, 2020, Dr. Chan prepaid $480 to renew the clinic's magazine subscriptions. The subscription is for one year. c. On December 1, 2020, Dr. Chan pays $3,000 for supplies. At the end of the year, $2.000 of supplies had not been used. Required: For the above transactions, record the initial journal entry and the adjusting entry required on December 31. 2020.
Chapter12: Current Liabilities
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Transcribed Image Text:Dr. Erica Chan, MD owns EC Health Clinic. She prepares annual financial statements and has a December 31, 2020 year-end.
a. On October 1, 2020, Dr. Chan prepaid $8,000 for four months of rent.
b. On November 1, 2020, Dr. Chan prepaid $480 to renew the clinic's magazine subscriptions. The subscription is for one year.
c. On December 1, 2020, Dr. Chan pays $3,000 for supplies. At the end of the year, $2.000 of supplies had not been used.
Requlred:
For the above transactions, record the initial journal entry and the adjusting entry required on December 31, 2020.
a.
View transaction list
View joumal entry worksheet
No
Date
General Journal
Debit
Credit
Oct 01, 2020
Prepaid rent
8,000
Cash
8,000
Prepaid magazine subscription
480
Cash
480
2
Dec 31, 2020
Rent expense
6,000
Prepaid rent
6,000
Magazine subscription expense
80
Prepaid magazine subscription
80
Supplies expense
1,000
Supplies
1,000
Transcribed Image Text:b.
View transaction list
1
Record a prepaid magazine subscription.
2 Record the expiration of the magazine subscriptions.
Credit
Note :
= journal entry has been entered
Record entry
Clear entry
View general journal
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