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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
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

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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