Brief Exercise 3-6 Bramble Corporation owns a warehouse. On November 1, it rente
ID: 2592289 • Letter: B
Question
Brief Exercise 3-6 Bramble Corporation owns a warehouse. On November 1, it rented storage space to a lessee (tenant) for 3 months for a total cash payment of $2,910 received in advance. Prepare Bramble's November 1 journal entry and the December 31 annual adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXTExplanation / Answer
Answer
Date
Account titles & explanation
Debit
Credit
Working
01-Nov
Cash
2910
$2910 received for 3 months (Nov to Jan)
Advance Rent/Advance from customer
2910
31-Dec
Advance Rent/Advance from customer
1940
(Nov to Dec income credited and recognised-2 months)
Rental Income
1940
(2910 x 2months/3months)
Date
Account titles & explanation
Debit
Credit
Working
31-Dec
Insurance expense
2500
(Mar to Dec = 10 months in 2017)
Prepaid Insurance
2500
(6000 x 10months/24months)
31-Dec
Unearned subscription revenue
(54000 x no of months in 2017/36months)
(Date got hidden in question)
Earned Subscription revenue
(54000 x no of months in 2017/36months)
no of months in 2017 = from the hidden date till Dec 2017)
31-Dec
Supplies expenses
18000
(Opening + Purchase - Closing = Consumed)
Supplies
18000
(5000 + 16000 -3000 = 18000)
Date
Account titles & explanation
Debit
Credit
Working
01-Nov
Cash
2910
$2910 received for 3 months (Nov to Jan)
Advance Rent/Advance from customer
2910
31-Dec
Advance Rent/Advance from customer
1940
(Nov to Dec income credited and recognised-2 months)
Rental Income
1940
(2910 x 2months/3months)
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