3A cum problem EXAMPLE

3A cum problem EXAMPLE - XYZ, Inc. (Landlord) owns...

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12/31/04 DR/ <CR> NOTE: ACCOUNTS FOR Cash 250,000 INCOME STATEMENT Rent receivable 10,000 Rent revenue Land 2,000,000 Property operating expenses Building 2,200,000 Interest expense Equipment 100,000 Repairs & Maintenance expense Accumulated depreciation (600,000) Depreciation expense Accounts payable and accrued expenses (7,000) Security deposits (40,000) NOTE: all leases are less than one year Unearned rent - Debt (1,800,000) Contributed capital (1,500,000) Retained earnings (613,000) - The debt bears interest at an annual rate of 24%, and pays interest only on a yearly basis. The next payment is due March 31, 2005. Also, monthly depreciation is $17,500 During the period from 1/1/2005 through 1/31/2005, the following activity took place: (1) 150,000 (2) Received utility bills and other operating expense invoices , totalling: 65,000 (3) Paid outstanding bills and invoices totalling: 50,000 (4) 300 (5) A new tenant came in who paid a security deposit of: 850 (6) 550 (7) 8,000 PART I: Please record the journal entry applicable to each item of activity noted above. Do not
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3A cum problem EXAMPLE - XYZ, Inc. (Landlord) owns...

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