Question

Q1 Has 6 distinct subsections based off the information below:

1. On October 1, 2021, Hurricane lends $7,100 to another company. The other company signs a note indicating principal and 12% interest will be paid to Hurricane on September 30, 2022.

2. On November 1, 2021, Hurricane pays its landlord $1,650 representing rent for the months of November through January. The payment is debited to Prepaid Rent for the entire amount.

3. On August 1, 2021, Hurricane collects $10,920 in advance from another company that is renting a portion of Hurricane’s factory. The $10,920 represents one year's rent and the entire amount is credited to Deferred Revenue.

4. Depreciation on machinery is $3,600 for the year.

5. Salaries for the year earned by employees but not paid to them or recorded are $3,100.

6. Hurricane begins the year with $550 in supplies. During the year, the company purchases $3,600 in supplies and debits that amount to Supplies. At year-end, supplies costing $1,600 remain on hand.
   Journal entry worksheet 1 2 3 4 5 6 On October 1, 2021, Hurricane lends $7,100 to another company. The other company signs a note indicating principal and 12% interest will be paid to Hurricane on September 30, 2022. Record the adjusting entry for interest at its year-end of December 31. Note: Enter debits before credits. Date Debit Credit General Journal December 31 Interest Receivable : Interest Revenue Record entry Clear entry View general journal
   

Answer 1

Date	General Journal	Debit	Credit
Dec. 31	Interest receivable	213
	Interest revenue (7,100x12%x3/12)		213
Dec. 31	Rent expense (1,650x2/3)	1,100
	Prepaid rent		1,100
Dec. 31	Deferred revenue	4,550
	Revenue (10,920x5/12)		4,550
Dec. 31	Depreciation expense	3,600
	Accumulated depreciation		3,600
Dec. 31	Salaries expense	3,100
	Salaries payable		3,100
Dec. 31	Supplies expense (550+3,600-1,600)	2,550
	Supplies		2,550