Hi, please answer the full question below and don\'t write by hands, please type

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Hi, please answer the full question below and don't write by hands, please type the answers. Thank you.

E3-5 Classifying and journalising adjusting entries [10-15 min] Consider the following independent situations at 31 December 2016: a On 1 August, a business collected $3300 rent in advance, debiting Cash and crediting Unearned rent revenue. The tenant was paying one year's rent in advance. At 31 December the business must account for the amount of rent it has earned. b Salary expense is $1700 per day-Monday to Friday-and the business pays employees each Friday. This year 31 December falls on a Saturday. c The unadjusted balance of the Supplies account is $3 500. Supplies on hand total $1700. d Equipment depreciation was $300. e On 1 March, when the business prepaid $600 for a two-year insurance policy, the business debited Prepaid insurance and credited Cash. Requirements 1 For each situation, indicate which category of adjustment is described. 2 Journalise the adjusting entry needed on 31 December for each situation. Use the letters to label the journal entries.

Explanation / Answer

1

2

a Deferral b Accrual c Accrual d Deferral e Deferral

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