Question

C riod will not wishes to enter receipts and payments in all not require reversing entries the Cated manner and give the d ons in the entries for each part auch a manner thaiments at the end of The next period. Record the 1. An insuran insurance policy for years was acquired on April 1, 2017 for $24.00 Rent of $15.000 for six months for a par t e b ine was received the next r y Dec 1.2017 1. 2017 Toon of the building was meceived on November 3. The following information rela mation relates to the Wallst period is the calendar year. i he end of 2017. The accounting 1. Employees are paid every Friday for the five day week ending on that day. Salaries amount to $4.000 per week. The accounting period ends on a Tuesday. 2. A note for S5,000 was received from a customer in a sales transaction on April 1, 2017. The note matures in one year and bears 8% interest. 3. On September 1, 2017. Wallstrom borrowed $10,000 cash by signing a note payable due in one year at 6% interest. Instructions Using the information given above, prepare the necessary adjusting entries at December 31, 2017

Answer 1

	Journal entry
		Dr	Cr
1 April 2017	Prepaid Insurance	24000
	Cash		24000
	Insurance Expense	9000
	Prepaid Insurance		9000
To record buying of prepaid insurance and to recognize insurance expense till year end
1 Nov 2017	Cash	15,000
	Unearned Rent		15,000
	Unearned Rent	5000
	Rent Revenue		5000
To record Rent received and to recognize rent Revenue till the year end

Note : Some Businesses follow this For every Quarter or half Yearly or monthly so that it would be easy for them to Journal the entries