D Question 5 10 pts Prepare the annual adjusting entries for the following trans

Question

D Question 5 10 pts Prepare the annual adjusting entries for the following transactions: a. On August 1, Johnson paid one year in advance for office space. The Prepaid Rent account and Cash accounts in the amount of $24,000 were used to record the payment. b. On October, Johnson received payment in advance for services to be performed over the next 12 months. The amount was $12,000 and the Cash and Unearned Fee Revenue accounts were used. c. As of December 31, Johnson had not recorded unpaid wages of $500 d. During November and December, Johnson provided services to a client in the amount of $5,400 but had not yet billed the client. HTML Editor Paragraph

Explanation / Answer

a Rent expense 10000 =24000/12*5       Prepaid rent 10000 b Unearned fee revenue 3000 =12000/12*3        Fee revenue 3000 c Wages expense 500       Wages payable 500 d Accounts receivable 5400        Fee revenue 5400

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