For each of the following transactions for the Sky Blue Corporation, prepare the
ID: 2334938 • Letter: F
Question
For each of the following transactions for the Sky Blue Corporation, prepare the adjusting journal entries required on October 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Collected $2,550 rent for the period October 1 to December 31, which was credited to Deferred Revenue on October 1. Paid $1,320 for a two-year insurance premium on October 1 and debited Prepaid Insurance for that amount. Used a machine purchased on October 1 for $48,600. The company estimates annual depreciation of $4,860.
Explanation / Answer
Adjusting entry :
Date account and explanation debit credit Oct 31 Deferred revenue (2550/3) 850 Rent revenue 850 (To record rent revenue adjusted) Oct 31 Insurance expense (1320/24) 55 Prepaid insurance 55 (To record insurance expense) Oct 31 Depreciation expense (4860/12) 405 Accumlated depreciation-Machine 405 (To record depreciation expense)Related Questions
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