Question

Print 3. Consider the following independent situations at December 31: Click the icon to view the situations.) Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the joumal entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. On October 1, a business collected $3,000 rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. Al December 31, the business must account for the amount of rent it has earned. Date Accounts and Explanation Debit Credit (a) Dec. 31 b. Salaries expense is $1,800 per day—Monday through Friday—and the business pays employees each Friday. This year December 31 falls on a Thursday. Date Accounts and Explanation Debit Credit (b) Dec. 31 (6) (8) (9) (10) c. The unadjusted balance of the Office Supplies account is $3.000. Office supplies on hand total $1,900. Date Accounts and Explanation Debit Credit (c) Dec. 31 (12) (13) (15)

Answer 1

Date	Accounts and Explanation	Debit	Credit
(a) Dec. 31	(1) Unearned revenue ($3000 x 3/12)	750
	(2) Rent revenue		750
	(3)
	(4)
	(5) To record rent revenue that was collected in advance.
(b) Dec. 31	(6) Salaries expense ($1800 x 4)	7200
	(7) Salaries payable		7200
	(8)
	(9)
	(10) To accrue salaries expense.
(c) Dec. 31	(11) Supplies expense ($3000 - $1900)	1100
	(12) Office supplies		1100
	(13)
	(14)
	(15) To record office supplies used
(d) Dec. 31	(16) Depreciation expense-equipment	500
	(17) Accumulated depreciation-equipment		500
	(18)
	(19)
	(20) To record depreciation on equipment.
(e) Dec. 31	(21) Insurance expense ($4320 x 9/24)	1620
	(22) Prepaid insurance		1620
	(23)
	(24)
	(25) To record insurance expense.