Financial Accounting, Student Value Edition (4th Edition)
4th Edition
ISBN: 9780134114811
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Chapter 3, Problem 32BE
Common adjusting
Journalize the adjusting entry needed at October 31, the fiscal year-end, for each of the following independent situations. No other
- a. On August 1, we collected $6,000 rent in advance. We debited Cash and credited Unearned Rent Revenue. The tenant was paying six months′ rent in advance.
- b. The business holds a $30,000 note receivable. Interest revenue of $920 has been earned on the note but not yet received.
- c. Salaries expense is $2,700 per day, Monday through Friday, and the business pays employees each Friday. This year, October 31 falls on a Wednesday.
- d. The unadjusted balance of the Supplies account is $825. Supplies on hand total $450.
- e. Equipment was purchased two years ago at a cost of $30,000. The equipment's useful life is six years.
- f. On April 1, when $1,320 was paid for a one-year insurance policy, Prepaid Insurance was debited, and Cash was credited.
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Chapter 3 Solutions
Financial Accounting, Student Value Edition (4th Edition)
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