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toarotherTngary, The other company sgns aideindatg priqui and 8% iterest wil be

ID: 2331305 • Letter: T

Question

toarotherTngary, The other company sgns aideindatg priqui and 8% iterest wil be paid 2019 b On Novemnber 1,2018, Hurricae pays its landiond $2,700 rapresenting r mane on Soptember 30, ent for the months of November shrough January The peyment is deoited to Prepaid Rent for the et another company thast is renting a portion of Huricane's tactory. The $11,760 nepresents one years rent and the enre amount is credited to Deferred Revenue d Depreciation on machinery is $4,300 for the year e. Salaies f or the yoar eamed by employees but not paid to them or necorded are $3,800 f Hurricane begins the year with $900 in supplies r remain on hand Duing the year, the compeny purchases 84.300 m supplies and dets that amount to Supplies, At year-end, supplies costing $2.300 Required Record the necessary adjusting entries at December 31,2018, for Huicane Company for each of the suations Assume t no adjusting entries were recorded (t no entry is required for a transactionvevent, select "No jourmal entry required in the first account ed hat no financial statements were prepared during the year and Journal entry worksheet Record the adjustment for salaries k Pro

Explanation / Answer


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Journal Enteries Date Account Titles & Description Debit Credit a Accrued Interest on Note $              156 Interest Income $              156 (Being Interest for 3 Months Accrued) * 7800*8%/12*3 = 156 b Rent Expenses $          1,800 To Prepaid Rent $          1,800 (Being amortization entry Passed for Rent Exp.) * 2700/3*2 = 1800 c Deferred Revenue $          4,900 Rent Revenue $          4,900 (Being relass entry Passed for Rent Revenue) *11760/12*5 =4900 d Depreciation $          4,300 Accumulated Depreciation $          4,300 (Being Depreciation Recorded) e Salaries Expenses $          3,800 Salaries Payable $          3,800 (Being Wages Accrued) f Supplies Expenses $          2,900 Supplies $          2,900 (Being Supplies Consumed) * 900+4300-2300 = 2900