Chapter 3 week 2 E3-19

Chapter 3 week 2 E3-19 - Prepaid Insurance and credited...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
E3-19   a. On October 1, we collected $4,000 rent in advance, debiting Cash and crediting  Unearned Rent Revenue. The tenant was paying one year’s rent in advance. At  December 31, we must account for the amount of rent we’ve earned.  b. Salary expense is $1,500 per day—Monday through Friday—and the business pays  employees each Friday. This year December 31 falls on a Tuesday.  c. The unadjusted balance of the Supplies account is $3,100. Supplies on hand total  $1,200.  d. Equipment was purchased last year at a cost of $10,000. The equipment’s useful life  is four years. Record the year’s depreciation.  e. On September 1, when we prepaid $1,200 for a two-year insurance policy, we debited 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Prepaid Insurance and credited Cash. Our Company General Journal December 31, 2010 Date Accounts & Explanations Debit Credit Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Rent Expense ($4,000 x 1/12) Prepaid Rent Salary Expense Cash Supplies Expense ($3,100 - $1,200) Supplies Depreciation Expense-Furniture Accumulated Depreciation-Furniture Insurance Expense Prepaid Insurance 333.33 30,000 1,900 2,500 50 333.33 30,000 1,900 2,500 50...
View Full Document

Page1 / 2

Chapter 3 week 2 E3-19 - Prepaid Insurance and credited...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online