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a. On October 1, a business collected $3,600 rent in advance, debiting Cash and crediting Unearned 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. (a More info a. On October 1, business collected $3,600 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 $1,000 per day-Monday through Friday and the business pays employees each Friday. This year December 31 falls on a Thursday. c. The unadjusted balance of the Office Supplies account is $2,900. Office supplies on hand total $1,500. d. Equipment depreciation was $550. e. On April 1, when the business prepaid $1,200 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. Print Done - X

a. On October 1, a business collected $3,600 rent in advance, debiting Cash and crediting Unearned 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. (a More info a. On October 1, business collected $3,600 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 $1,000 per day-Monday through Friday and the business pays employees each Friday. This year December 31 falls on a Thursday. c. The unadjusted balance of the Office Supplies account is $2,900. Office supplies on hand total $1,500. d. Equipment depreciation was $550. e. On April 1, when the business prepaid $1,200 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. Print Done - X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a. On October 1, a business collected $3,600 rent in advance, debiting Cash and crediting Unearned 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. (a More info a. On October 1, business collected $3,600 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 $1,000 per day-Monday through Friday and the business pays employees each Friday. This year December 31 falls on a Thursday. c. The unadjusted balance of the Office Supplies account is $2,900. Office supplies on hand total $1,500. d. Equipment depreciation was $550. e. On April 1, when the business prepaid $1,200 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. Print Done - X
Transcribed Image Text:a. On October 1, a business collected $3,600 rent in advance, debiting Cash and crediting Unearned 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. (a More info a. On October 1, business collected $3,600 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 $1,000 per day-Monday through Friday and the business pays employees each Friday. This year December 31 falls on a Thursday. c. The unadjusted balance of the Office Supplies account is $2,900. Office supplies on hand total $1,500. d. Equipment depreciation was $550. e. On April 1, when the business prepaid $1,200 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. Print Done - X
Date (a) Dec. 31 es Accounts and Explanation Unearned 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 Get mc Unearned Revenue Debit Credit
Transcribed Image Text:Date (a) Dec. 31 es Accounts and Explanation Unearned 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 Get mc Unearned Revenue Debit Credit
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