Question

Below are transactions for Hurricane Company during 2021 1. On October 1, 2021, Hurricane lends $8.100 to another company. The other company signs a note indicating principal and 1235 interest will be paid to Hurricane on September 30, 2022 2. On November 1, 2021, Hurricane pays its landlord $3,150 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 $12,120 in advance from another company that is renting a portion of Hurricane's factory. The $12,120 represents one year's rent and the entire amount is credited to Deferred Revenue. 4. Depreciation on machinery is $4,600 for the year. 5. Salaries for the year earned by employees but not paid to them or recorded are $4,100 6. Hurricane begins the year with $1,050 in supplies. During the year, the company purchases $4,600 in supplies and debits that amount to Supplies. At year-end, supplies costing $2,600 remain on hand Required: Record the necessary adjusting entries at December 31, 2021, for Hurricane Company for each of the situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 2 3 4 5 6 On October 1, 2021, Hurricane lends $8,100 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. General Journal Date December 31 Debit Debit Credit SER

Answer 1

Date	General Journal	Debit	Credit
December 31	Interest receivable ($8100 x 12% x 3/12)	243
	Interest revenue		243
	(To record interest accrued on note receivable)
December 31	Rent expense ($3150 x 2/3)	2100
	Prepaid rent		2100
	(To record prepaid rent expired)
December 31	Deferred revenue ($12120 x 5/12)	5050
	Rent revenue		5050
	(To record rent revenue earned)
December 31	Depreciation expense	4600
	Accumulated depreciation-machinery		4600
	(To record depreciation expense)
December 31	Salaries expense	4100
	Salaries payable		4100
	(To record salaries accrued but unpaid)
December 31	Supplies expense ($1050 + $4600 - $2600)	3050
	Supplies		3050
	(To record supplies used)