Adjusting Entries Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjusting entries have been made: Debit Credit Prepaid insurance $7,200 Supplies 2,100 Office equipment 7,680 Unearned rent revenue 5,400 Salaries expense 3,250 Rent revenue 16,000 Monthly financial statements are prepared. Using the following information, record in a general journal the adjusting entries necessary on January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $975 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly. d. On January 1, the firm collected six months' rent in advance from a tenant renting space for $925 per month. e. Accrued salaries not recorded as of January 31 are $625.
Adjusting Entries Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjusting entries have been made: Debit Credit Prepaid insurance $7,200 Supplies 2,100 Office equipment 7,680 Unearned rent revenue 5,400 Salaries expense 3,250 Rent revenue 16,000 Monthly financial statements are prepared. Using the following information, record in a general journal the adjusting entries necessary on January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $975 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly. d. On January 1, the firm collected six months' rent in advance from a tenant renting space for $925 per month. e. Accrued salaries not recorded as of January 31 are $625.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Adjusting Entries Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjusting entries have been made:
Debit Credit
Prepaid insurance
$7,200
Supplies
2,100
Office equipment
7,680
Unearned rent revenue
5,400
Salaries expense
3,250
Rent revenue
16,000
Monthly financial statements are prepared. Using the following information, record in a general journal the adjusting entries necessary on January 31:
a. Prepaid Insurance represents a three-year premium paid on January 1.
b. Supplies of $975 were on hand January 31.
c. Office equipment is expected to last eight years. Depreciation is recorded monthly.
d. On January 1, the firm collected six months' rent in advance from a tenant renting space for $925 per month.
e. Accrued salaries not recorded as of January 31 are $625.
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