Question

 Date Account title Debit credit a Interest expense 3900 Interest payable 3900 b Interest receivable 4800 Interest revenue 4800 c Unearned rent revenue 3400 Rent revenue 3400 [Being rent earned for 6 months out of 24 months /2 years . 13600 *6/24 ] d salaries and wage expense 25200 salaries and wage payable 25200 [Being salary accrued for 4 days :6300*4] e Supplies expense 2000 Supplies 2000 [Being supplies used 3500-1500] f Depreciation expense 12000 Accumulated depreciation -equipment 12000 [Being depreciation expense for the year ]

working :

Depreciation expense =[cost -residual value ]/useful life

= [60000 -0 ]/ 5

= 12000

b)Book value = 60000 - 12000 = \$ 48000

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