male services to be rendered next year. Prepare general journal entries to recor

Question

male services to be rendered next year. Prepare general journal entries to record these transactions. 8) Prepare general journal entries on December 31 to record the following unrclated year-end adjustme a. Estimated depreciation on equipment for the year, $4,500. b. The Prepaid Insurance account has a $3,680 debit balance before adjustment. An examination of insurance policies shows $600 of insurance expired. c. The Prepaid Insurance account has a $2,400 debit balance before adjustment. An examination of insurance policies shows $950 of unexpired insurance. d. The company has three office empioyees whq each earn S100 per day for a five-day workweek th ends on Friday. The employees were paid on Friday:ecember26, and have worked full days on Monday, Tuesday, and Wednesday, December 29, 30% and 31. e. On November 1, the company received 6 months' rent in advance from a tenant whose rent is $70 month. The $4,200 was credited to the Unearned Rent account. f. The company collects rent monthly from its tenants. One tenant whose rent is $1,000 per month h paid his rent for December.

Explanation / Answer

SOLUTION:

Debit Credit 1 Depr. Expense–Office Equipment 4,500 Accum. Depr.–Office Equipment 4,500 2 Insurance Expense 600 Prepaid Insurance 600 3 Insurance Expense 1,450 Prepaid Insurance 1,450 (2400 - 950) 4 Office Salaries Expense 900 Office Salaries Payable 900 Employees x 3 days x $100/day/employee = $900 5 Unearned Rent 1,400 Rent earned 1,400 6 Accounts Receivable (or Rent Receivable) 1,000 Rent earned 1,000

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