Adjust entries The rent payment made on June 17 was for June, July, August and S

Question

Adjust entries The rent payment made on June 17 was for June, July, August and September. Expense the amount associated with one month's rent. A physical inventory showed that only $281.00 worth of office supplies remained on hand as of June 30. The annual interest rate on the mortgage payable was 8.50 percent. Interest expense for one-half month.should be computed because the building and land were purchased and the liability incurred on June 16 Information relating to the prepaid insurance may be obtained from the transaction recorded on June 14. Expense the amount associated with one half month's insurance A review of Byte's job worksheets show that there arc unbilled revenues in the amount of $5,250 for the period of June 28-30. The fixed assets have estimated useful lives as follows: Building- 31.5 years Computer Equipment - 5.0 years Office Equipment 7.0 years Use the straight-line method of depreciation. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The building's scrap value is S500. The office equipment has a scrap value of S500. A review of the payroll records show that unpaid salaries in the amount of S516 are owed by Byte for three days, June 28 - 30.

Explanation / Answer

Jouranl entries

XXXX

June 27 Rent expense To prepaid rent June 28 Supplies expense $X-281 Supplies (X- 281) $X-281 June 29 Interest expense T o interest payable(X @8.5%*1.5/12) June 30 Insurance XXX To prepaid insurance XXX 31 A/c recievable $5250 To sales revenue $5250 32 Building dep (X-7500/31.5 = X/12) XXX Computer X+Y +Z/ 5= X/12 XXXX Office equipment X+X -X /7 = X/12 $X To Accumulated depreciation

XXXX

33 Salary expense $516 To Salary payble $516

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