Solution:
Journal Entries - Birch Company | |||
Date | Particulars | Debit | Credit |
31-Dec | Maintenance expense Dr ($2,700*4/6) | $1,800.00 | |
To Prepaid maintenance | $1,800.00 | ||
(To record maintenance expense) | |||
31-Dec | Supplies expense Dr ($9,400 - $2,900) | $6,500.00 | |
To Supplies | $6,500.00 | ||
(To record supplies expense) | |||
31-Dec | Unearned commission fees Dr ($9,000 - $4,000) | $5,000.00 | |
To Fees earned | $5,000.00 | ||
(To record commission fees revenue) | |||
31-Dec | Fees receivables Dr | $3,500.00 | |
To Fees earned | $3,500.00 | ||
(To record fees earned) | |||
31-Dec | Rent expense Dr [($86,000 + $5,000 + $3,500)*2%] | $1,890.00 | |
To Rent payable | $1,890.00 | ||
(To record rent expense) |
for number 1: Birch company paid 2700 to cover maintenance for 6 months beginning September 1....
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