Question

On January 1, 2020 the company paid $3,600 for an annual (12 month) flood insurance policy covering their headquarter building. Assume the company has a monthly accounting period, prepare the adjusting entry needed at the end of January. Assume the company has a quarterly accounting period (report once every 3 months). Prepare the entry needed at the end of the first quarter. A business pays its employees $1,500 per day and payday is each Friday. Prepare the adjusting entry needed if the end of the accounting period falls on Monday. Prepare the adjusting entry needed if the end of the accounting period falls on Thursday. ha On October 1, a tenant pays their landlord $2,500 for five moths rent. Prepare the entry needed on October 1st to record this transaction Prepare the adjusting entry needed on October 31st Prepare the entry needed on October 1st if you are the Landlord Prepare the adjusting entry needed on October 31st if you are the Landlord.

Answer 1

1. Supplies Expense -

Credit Adjusting Entries Date Accounts Title Debit Sept 30 Supplies Expense $ 2,925 Supplies (Being Supplies utilised) $ 2,925

2. Insurance Expense -

Credit Journal Entries Date Accounts Title Debit Jan 1 Prepaid Insurance $ 3,600 Cash (Being Insurance paid for 12 Months) $ 3,600 Credit Adjusting Entries (In January) Date Accounts Title Debit Jan 30 Insurance Expenses $ 300 Prepaid Insurance (Being Insurance expense incurred) $ 300 Credit Adjusting Entries (Quarterly) Date Accounts Title Debit Mar 30 Insurance Expenses $ 900 Prepaid Insurance (Being Insurance expense incurred) $ 900

3. Salaries Expense -

Date 1 Journal Entries (On Monday) Accounts Title Debit Credit Salaries Expense $ 1,500 Salaries Payable $ 1,500 (Being Salaries Expense incurred and Accrued) Date 2 Journal Entries (On Tuesday) Accounts Title Debit Credit Salaries Expense $ 3,000 Salaries Payable $ 3,000 (Being Salaries Expense incurred and Accrued)

4. Rent Expenses -

Credit Date Oct 1 In the books of Tenant Journal Entries Accounts Title Debit Prepaid Rent $ 2,500 Cash (Being Rent Paid for 5 month) $ 2,500 Credit In the books of Tenant Adjusting Entries Date Accounts Title Debit Oct 31 Rent Expense $ 500 Prepaid Rent (Being Rent Expense incurred) $ $ 500

In the books of Landlord Journal Entries Date Accounts Title Debit Credit Oct 1 Cash $ 2,500 Unearned Rent Revenue $ 2,500 (Being Rent Received for 5 months in advance) Credit In the books of Landlord Adjusting Entries Date Accounts Title Debit Oct 31 Unearned Rent Revenue $ 500 Rent Revenue (Being Rent Income Earned) $ $ 500