Question

December No Issued check for $4,200 to First Security Insurance for the premium on Waren's six-month liability insurance policy. The policy period runs from December 1, 2017 to June 1, 2018. • Remember to consider the time period to which this expenditure applies. No Sold 150 shares of Green Corporation common stock for $26.00 per share. The shares were originally purchased on July 11, 2017, for $22.00 per share plus a commission of $85. Central Brokerage retained a commission of $75 on the sale and forwarded check No. 4289 for the net sale proceeds to Waren. • . Calculate and record the gain or loss on the sale of the marketable securities. Be sure to consider the effects of both the purchase and sale commission expenses. | No Loaned $7,000 to Maple Valley Electric by issuing a four-year note receivable with a stated annual interest rate of 6%. The funds were loaned by issuing a check. Interest payments of $420.00 are due on December 31 of each year, beginning in 2018. The entire principal is due four years from December 31, 2017. No 29 The company signed an agreement to sublease an office in its building to Campos & Associates at a monthly rental rate of $1,100. In connection with the sublease, Waren received check No. 55947 for $3,300 from Campos & Associates covering rent for the first quarter of 2018. Add a new general ledger account on page 36. Assign it G/L #21100 - Unearned Revenue. Be sure to include this account in the proper section of Waren's 2017

Answer 1

1.

Date	Account Titles	Debit	Credit
Dec 1	Prepaid Insurance	4,200
	Cash		4,200
Dec 31	Insurance Expense	700
	Prepaid Insurance		700

2.

Date	Account Titles	Debit	Credit
July 11	Investment Marketable Securities ( 150 x $ 22 + $ 85)	3,385
	Cash		3,385
Dec 29	Cash ( 150 x $ 26 - $ 75 )	3,825
	Investment in Marketable Securities		3,385
	Gain on Sale of Marketable Securities		440

3.

	Account Titles	Debit	Credit
Dec 29	Note Receivable	7,000
	Cash		7,000
Dec 31	Interest Expense	3.50
	Interest Payable		3.50

4.

	Account Titles	Debit	Credit
Dec 29	Cash	3,300
	Unearned Revenue		3,300