On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow. DATE TRANSACTIONS July 1 Signed a lease for an office and issued Check 101 for $13,050 to pay the rent in advance for six months. 1 Borrowed money from Second National Bank by issuing a four-month, 6 percent note for $36,000; received $35,280 because the bank deducted the interest in advance. Record the adjusting journal entries that must be made on July 31, 2019. 1) Record the adjustment for rent. 2) Record the adjustment for interest paid in advance.
On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow. DATE TRANSACTIONS July 1 Signed a lease for an office and issued Check 101 for $13,050 to pay the rent in advance for six months. 1 Borrowed money from Second National Bank by issuing a four-month, 6 percent note for $36,000; received $35,280 because the bank deducted the interest in advance. Record the adjusting journal entries that must be made on July 31, 2019. 1) Record the adjustment for rent. 2) Record the adjustment for interest paid in advance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow.
| DATE | TRANSACTIONS | |
| July | 1 |
Signed a lease for an office and issued Check 101 for $13,050 to pay the rent in advance for six months. |
| 1 |
Borrowed money from Second National Bank by issuing a four-month, 6 percent note for $36,000; received $35,280 because the bank deducted the interest in advance.
|
Record the
1) Record the adjustment for rent.
2) Record the adjustment for interest paid in advance.
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