Question

QUESTION 1 Problem 1-Adjusting entries. Present, in proper journal entry form, the adjustments that would be made on December 31, 2020 for each of the following. If calculations are necessary, show calculations below the entry. Full credit will not be awarded if a calculation is required but not shown. 1. Supplies of $9,350 were on hand at December 31, 2019. Supplies costing $25,000 were purchased during the year and debited to Supples. A count on December 31, 2020 indicated that supplies costing on hand of $8,800. 2. On April 30, a ten-month, 6% note for $40,000 was received from a customer. 3. On October 1, $12,000 was collected as rent for one year and Rent Revenue was credited. 4. Depreciation of $10,000 was recorded on the company's equipment.
please help!!

Answer 1

Sno	Date	Accounts	Debit	Credit
1	Dec 31 2020	Supplies expense	25,550
		Supplies		25,550
		(Calculation ; opening balance of supplies + purchases of supplies - closing balance of supplies =>9,350+25,000-8,800 =>$25,550)
2	Dec 31	Interest expense	1,800
		Interest payable		1,800
		(working; interest expense = amount of note *interest rate * number of months /12) =>($40,000*6%*9 months/12=>$1,800)
3	Dec 31	Rent revenue	9,000
		Unearned rent revenue		9,000
		(working; amount of pre received rent * number of months /12) => ($12,000*3 /12)=>$3000 should be recognised as rent revenue, but erroneously $12,000 has already been recognised as rent revenue, now we need to reverse the recognition to the extent of $12,000 - 3,000=>$9,000)
4	Dec 31	Depreciation expense	10,000
		Accumulated depreciation - equipment		10,000