HW2_Solution - Homework#2 Solution 4-38(15-20 min Answers...

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138 Homework #2 Solution 4-38 (15-20 min.) Answers are in millions of dollars. 1. A = L + SE Prepaid Rent Expenses Expense a. Rent expired –5 = –5 Journal entry: Rent expense 5 Prepaid expenses 5 Unearned Sales Revenue Revenue b. Delivery of tires paid for in advance = –7 +7 Journal entry: Unearned revenue 7 Sales revenue 7 Accrued Interest Interest Receivable Revenue c. Interest earned but not received +6 = +6 Journal entry: Accrued interest receivable 6 Interest revenue 6
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