Question

Answer the following questions about prepaid expenses: a. On October 1, Pegassi Motors Service prepaid $ 6000 for six months' rent. Give the adjusting entry to record rent expense at October 31. Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at October 31. High and Low adjusts the accounts only at October 31, the end of its fiscal year. b. On October 1, Pegassi motors paid $ 850 for supplies. At October 31, High and Low has $ 700 of supplies on hand. Make the required journal entry at October 31. Then post all amounts to the accounts and show their balances at October 31. Assume no beginning balance in supplies.

a. On October 1, Pegassi motors prepaid $ 6,000 for six months' rent. Give the adjusting entry to record rent expense at October 31. Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at October 31. High and Low adjusts the accounts only at October 31, the end of its fiscal year. Prepare the adjusting journal entry to record the rent expense at October 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Journal Entry Date Accounts and Explanations Debit Credit Oct 31 Post the October 1 and 31 transactions to the following T-accounts. Be sure to calculate the ending balance of the accounts.

On October 1, Pegassi Motors paid $ 850 for supplies. At October 31, High and Low has $ 700 of supplies on hand. Make the required journal entry at October 31. Then post all amounts to the accounts and show their balances at October 31. Assume no beginning balance in supplies. Prepare the adjusting journal entry to record the supplies expense at October 31.

Answer 1