Question

a. Details of Prepaid Insurance are shown in the account Prepaid Insurance Jan 1 Bal 2,500 Mar 31 3,600 Tiger prepays insurance on March 31 each year. At December 31, $700 is still prepaid. b. Tiger pays employees each Friday. The amount of the weekly payroll is $6,200 for a five-day work week The current acCounting period ends on Thursday Tiger has a note receivable. During the current year, Tiger has earned accrued interest revenue of $500 that it will collect next year d. The beginning balance of supplies was $3,400. During the year, Tiger purchased supplies costing $6,300, and at December 31 supplies on hand total $2,100. Tiger is providing services for Sting Ray Investments, and the owner of Sting Ray paid Tiger $10,600 as the annual service fee. Tiger recorded this amount as Unearned Service Revenue Tiger estimates that it has earned 60% of the total fee during the current year f. Depreciation for the current year includes Office Furniture, $3,800, and Equipment, $5,600. Make a compound entry C. e.

Answer 1

Journal Account Titles and Explanation 31-Dec Insurance expense (2500+3600-700) Debit ($) Credit ($) No. Date 5,400 Prepaid insurance 5,400 (To record the insurance expired) 31-Dec Salaries and wages expense (6200*4/5) 4,960 Salaries and wages payable 4,960 |(To record the salaries and wages expense outstanding for 4 days) 31-Dec Interest receivable 500 C Interest income 500 (To record the interest income earned) 31-Dec Supplies expense (3400+6300-2100) 7,600 Supplies 7,600 |(To record the supplies consumed) 31-Dec Unearned revenue (10600*60%) Service revenu |(To record the revenue realised) 6,360 e 6,360 e 31-Dec Depreciation expense Furniture Depreciation expense - Equipment Accumulated depreciation f 3,800 5,600 9,400 (To record the depreciation expense)