XYZ Company borrowed $30,000 on August 1, 2014 at 8% interest, principal and int
ID: 2340443 • Letter: X
Question
XYZ Company borrowed $30,000 on August 1, 2014 at 8% interest, principal and interest due February 1,2015. Assume no adjustments throughout the year What is the adjusting entry on December 31, 2014? MMM Company paid $36,000 on May 1, 2014 for one year's rent in advance. They charged prepaid rent for the entire amount. Assume no adjustments throughout the year. 2. What is the adjusting entry on December 31, 2014? 3 NNN Company paid $60,000 on August 1, 2014 for one year's rent in advance. They charged rent expense for the entire amount. Assume no adjustments throughout the year. What is the adjusting entry on December 31, 2014?Explanation / Answer
Adjusting entry :
No Account and explanation debit credit 1 Interest expense (30000*8%*5/12) 1000 Interest payable 1000 (To record accured interest) 2 Rent expense (36000/12*8) 24000 Prepaid rent 24000 (To record rent expense) 3 Prepaid rent (60000/12*7) 35000 Rent expense 35000 (To record prepaid rent)Related Questions
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