Survey Of Accounting
Survey Of Accounting
4th Edition
ISBN: 9780077862374
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 11, Problem 5E

a)

To determine

Calculate rental cost per unit and utilities cost per unit for the months of March and April.

b)

To determine

Identify which cost is variable and fixed cost

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Question:  Record the payment of rent in a general journal format using the information below.  July 1, 2021- Signed a lease for an office and issued Check 101 for $15,600 to pay the rent in advance for six months.  •     July 1, 2021- Borrowed money from Bancorp West by issuing a four-month, 4.5 percent note for $40,000; received $39,400 because the bank deducted the interest in advance.  •    July 1, 2021- Signed an agreement with Johnson Ventures to provide financial services for one year at $6,000 per month; received the entire fee of $72,000 in advance. The $72,000 was credited to Unearned Financial Service Fees. •    July 1, 2021- Purchased office equipment for $15,900 from Office Outfitters; issued a two-month, 6 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,500 salvage value. The equipment will be depreciated using the straight-line method. •    July 1, 2021- Purchased a one-year insurance policy and issued Check 102 for $1,860…
Question: Record the borrowing in a general journal format.  •    July 1, 2021- Signed a lease for an office and issued Check 101 for $15,600 to pay the rent in advance for six months.  •     July 1, 2021- Borrowed money from Bancorp West by issuing a four-month, 4.5 percent note for $40,000; received $39,400 because the bank deducted the interest in advance.  •    July 1, 2021- Signed an agreement with Johnson Ventures to provide financial services for one year at $6,000 per month; received the entire fee of $72,000 in advance. The $72,000 was credited to Unearned Financial Service Fees. •    July 1, 2021- Purchased office equipment for $15,900 from Office Outfitters; issued a two-month, 6 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,500 salvage value. The equipment will be depreciated using the straight-line method. •    July 1, 2021- Purchased a one-year insurance policy and issued Check 102 for $1,860 to pay the entire premium. •…
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