Try another version of these questions Question 1 On June 1, MVP Sportswear prepaid six months of rent, $3,060: Record the journal entry for the payment on June 1. Record the adjusting entry required at June 30. JournalDateDescriptionDebitCreditJune 1 Accounts ReceivableCashPrepaid RentRent ExpenseSalaries ExpenseSalaries PayableService RevenueSubscription RevenueUnearned RevenueJune 1 Accounts ReceivableCashPrepaid RentRent ExpenseSalaries ExpenseSalaries PayableService RevenueSubscription RevenueUnearned Revenue June 30 Accounts ReceivableCashPrepaid RentRent ExpenseSalaries ExpenseSalaries PayableService RevenueSubscription RevenueUnearned RevenueJune 30 Accounts ReceivableCashPrepaid RentRent ExpenseSalaries ExpenseSalaries PayableService RevenueSubscription RevenueUnearned Revenue JournalDateDescriptionDebitCreditJune 1Prepaid Rent3,060June 1 Cash3,060 June 30Rent Expense510June 30 Prepaid Rent510 Question 2 Consider the following independent situations at December 31: On July 1, a business collected $6,690 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. On December 31, the business must account for the amount of rent it has earned. Salaries expense is $1,390 per day—Monday through Friday—and the business pays employees each Friday. This year, December 31 falls on a Thursday. The unadjusted balance of the Office Supplies account is $2,400 Office supplies on hand total $1,720. Equipment depreciation was $190. On October 1, when the business prepaid $6,120 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. Journalize the adjusting entry needed on December 31 for each situation. JournalDateDescriptionDebitCreditDecember 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned RevenueDecember 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned Revenue December 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned RevenueDecember 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned Revenue December 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned RevenueDecember 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned Revenue December 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned RevenueDecember 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned Revenue December 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned RevenueDecember 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned Revenue JournalDateDescriptionDebitCreditDecember 31Unearned Revenue3,345December 31 Rent Revenue3,345 December 31Salaries Expense5,560December 31 Salaries Payable5,560 December 31Office Supplies Expense680December 31 Office Supplies680 December 31Depreciation Expense190December 31 Accumulated Depr. - Equip.190 December 31Insurance Expense765December 31 Prepaid Insurance765
Try another version of these questions
On June 1, MVP Sportswear prepaid six months of rent, $3,060:
JournalDateDescriptionDebitCreditJune 1 Accounts ReceivableCashPrepaid RentRent ExpenseSalaries ExpenseSalaries PayableService RevenueSubscription RevenueUnearned RevenueJune 1 Accounts ReceivableCashPrepaid RentRent ExpenseSalaries ExpenseSalaries PayableService RevenueSubscription RevenueUnearned Revenue June 30 Accounts ReceivableCashPrepaid RentRent ExpenseSalaries ExpenseSalaries PayableService RevenueSubscription RevenueUnearned RevenueJune 30 Accounts ReceivableCashPrepaid RentRent ExpenseSalaries ExpenseSalaries PayableService RevenueSubscription RevenueUnearned Revenue
Consider the following independent situations at December 31:
Journalize the adjusting entry needed on December 31 for each situation.
JournalDateDescriptionDebitCreditDecember 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned RevenueDecember 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned Revenue December 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned RevenueDecember 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned Revenue December 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned RevenueDecember 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned Revenue December 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned RevenueDecember 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned Revenue December 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned RevenueDecember 31 Accounts PayableAccounts ReceivableAccumulated Depr. - Equip.CashDepreciation ExpenseInsurance ExpenseOffice SuppliesOffice Supplies ExpensePrepaid InsuranceRent RevenueSalaries ExpenseSalaries PayableUnearned Revenue