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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 3MCQ

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