Question

An analysis of the accounts shows the following. 1. 2. 3. The equipment depreciates $532 per month. Half of the unearned rent revenue was earned during the quarter. Interest of $760 is accrued on the notes payable. Supplies on hand total $1,615. Insurance expires at the rate of $760 per month. 4. 5.

Answer 1

Solution1:

Date	Particulars	Amount ($)	Amount($)
1	Depreciation on Equipment A/c Dr.	532
	To Equipment A/c		532
	(For depreciation provided on equipment)
2	Unearned Rent A/c Dr.
	To Rent A/c
	(for unearned rent earned)
3	Interest A/c Dr.	760
	To Interest Payable A/c		760
	(For interest due but not Paid)
4	Closing Stock A/c Dr.	1,615
	To Cost of good Sold A/c		1,615
	(For Stock in hand)
5.	Insurance A/c Dr.	760
	To Prepaid Insurance A/c		760
	(For insurance expires)

Solution 2:

Date	Particulars	Amount ($)	Amount ($)
1	Bank A/c Dr.
	To Interest A/c
	(For interest earned on investment)
2	Closing Stock A/c Dr.	17,200
	To cost of good sold A/c		17,200
	(For supplies on hand)
3	No Entryt
4	Salary and Wages A/c Dr.	3,100
	To Outstanding Salary and Wages A/c		3,100
	(For outstanding salary and wages)
5	Depreciation on Building A/c Dr.	5,400
	To Building A/c		5,400
	(For depreciation charged on building)
6	Unearned Services A/c Dr.	4,700
	To Services A/c		4,700
	(For unearned income becoming earned)
7	Maintenance & Repair A/c Dr.	2,000
	To outstanding Maintenance & repair A/c		2,000
	(For unpaid maintenance and repair cost)