Consider the following independent situations at December 31: 1. On July 1, a business collected $6,610 rent in advance, debiting Cash and crediting Unearned Revenue. 2. Salaries expense is $1,240 per day-Monday through Friday-and the business pays employees each Friday. This year, December 31 falls on a Thursday. 3. The unadjusted balance of the Office Supplies account is $2,460 Office supplies on hand total $1,770. 4. Equipment depreciation was $190. 5. On October 1, when the business prepaid $6,040 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. Journalize the adjusting entry needed on December 31 for each situation. Date December 31 a. 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. December 31 December 31 December 31 December 31 Description Uneanred Revenue Rent Revenue JIJU Debit Credit

Consider the following independent situations at December 31: 1. On July 1, a business collected $6,610 rent in advance, debiting Cash and crediting Unearned Revenue. 2. Salaries expense is $1,240 per day-Monday through Friday-and the business pays employees each Friday. This year, December 31 falls on a Thursday. 3. The unadjusted balance of the Office Supplies account is $2,460 Office supplies on hand total $1,770. 4. Equipment depreciation was $190. 5. On October 1, when the business prepaid $6,040 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. Journalize the adjusting entry needed on December 31 for each situation. Date December 31 a. 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. December 31 December 31 December 31 December 31 Description Uneanred Revenue Rent Revenue JIJU Debit Credit

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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