Question

AaBbce AaBbcc AaBb AaBbce AaB Aabbccc AaBbce dabbel daBbc AaBbce AaBbc Aabe 1 Normal T No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Intense Strong Quote Intense Paragraph Styles E3-13 Below are transactions for Hurricane Company during 2018. a. On October 1, 2018, Hurricane lends $9,000 to another company. The other company signs a note indicating principal and 12% interest will be paid to Hurricane on September 30, 2019. b. On November 1, 2018, Hurricane pays its landlord $4,500 representing rent for the months of November through January. The payment is debited to Prepaid Rent for the entire amount. c. On August 1, 2018, Hurricane collects $13,200 in advance from another company that is renting a portion of Hurricane's factory. The $13,200 represents one year's rent and the entire amount is credited to Deferred Revenue. d. Depreciation on machinery is $5,500 for the year. e. Salaries for the year earned by employees but not paid to them or recorded are $5,000 f. Hurricane begins the year with $1,500 in supplies. During the year, the company purchases $5,500 in supplies and debits that amount to Supplies. At year-end, supplies costing $3,500 remain on hand. Required: Record the necessary adjusting entries at December 31, 2018, for Hurricane Company for each of the situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. a.

Answer 1

Adjusting entries

No	General Journal	Debit	Credit
a	Interest receivable (9000*12%*3/12)	270
	Interest revenue		270
b	Rent expense (4500/3*2)	3000
	Prepaid rent		3000
c	Deferred revenue (13200/12*5)	5500
	Rent revenue		5500
d	Depreciation expense	5500
	Accumulated depreciation-machinery		5500
e	Salaries expense	5000
	Salaries payable		5000
f	Supplies expense (5000+5500-3500)	7000
	Supplies		7000