Just a few financial accounting questions... thanks! Below are transactions for

Question

Just a few financial accounting questions... thanks!

Below are transactions for Hurricane Company during 2018. a. On October 1, 2018, Hurricane lends $7,800 to another company. The other company signs a note indicating principal and 8% interest will be paid to Hurricane on September 30 2019 b. On November 1, 2018, Hurricane pays its landlord $2,700 representing rent for the months of November through January. The payment is debited to Prepaid Rent for the entire amount. c. On August 1, 2018, Hurricane collects $11,760 in advance from another company that is renting a portion of Hurricane's factory. The $11,760 represents one year's rent and the entire amount is credited to Deferred Revenue d. Depreciation on machinery is $4,300 for the year e. Salaries for the year earned by employees but not paid to them or recorded are $3,800 f. Hurricane begins the year with $900 in supplies. During the year, the company purchases $4,300 in supplies and debits that amount to Supplies. At year-end, supplies costing $2,300 remain on hand Required Record the necessary adjusting entries at December 31, 2018, for Hurricane Company for each of the situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 5 6 Record the adjustment for interest Note: Enter debits before credits. Transaction General Journal Debit Credit a. ript " Record entry Clear entry View general journal

Explanation / Answer

Solution 1:

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Journal Entries - Hurricane Company Transaction Particulars Debit Credit a Interest receivables Dr ($7,800*8%*3/12) $156.00         To Interest revenue $156.00 (To record adjusted entry of interest) b Rent Expense Dr ($2,700/3*2) $1,800.00         To Prepaid Rent $1,800.00 (To record adjusting entry of rent) c Deferred revenue Dr $4,900.00         To Rent revenue ($11,760*5/12) $4,900.00 (To record adjusting entry of rent revenue) d Depreciation Expense Dr $4,300.00         To Accumulated Depreciation - Machinery $4,300.00 (To record depreciation expense) e Salaries Expense Dr $3,800.00         To Salaries Payable $3,800.00 (To record salary expense) f Supplies Expense Dr ($900 + $4,300 - $2,300) $2,900.00         To Supplies $2,900.00 (To record supplies expense)

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