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 book value
3-21A. (Learning Objective 3: Adjust the accounts) Jenkins Rentals Company faced the
following situations. Journalize the
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. 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
year and then determine the equipment’s book value
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