Question

Willow Window Washing Services prepares adjustments monthly and shows the following selected accounts on its December 31, 2020, unadjusted trial balance: Debit Credit $3.510 Account Prepaid insurance Prepaid office rent Prepaid subscriptions Prepaid equipment rental 19,500 24,360 inces Required: Prepare the required monthly adjusting entries at December 31, 2020, based on the following additional information: a. The remaining balance in Prepaid Insurance was for a six-month insurance policy purchased for $7020 and in effect on September 1.2020 b. $4.500 of the balance in Prepaid Office Rent had not been used as at December 31, 2020. c. $1070 of the balance in Prepaid Subscriptions had been used as at December 31, 2020 d. The company paid $31.320 on April 1, 2020, to rent equipment for a three-year period beginning April 1, 2020.

Answer 1

Solution Particulars Debit Gredet . 2340 Insurance expense . To prepaid Insurance 2340 3510 Lomon x 4 months 15000 office rent expense To prepaid office rent [ 19500 - 4500] 15000 1070 Subscription expense To prepaid subscription 1070 7830 Equipment rental expense To prepard equipment rental 7830 r31320 - 36 months 9 months