For each of the following transactions for the Sky Blue Corporation, prepare the adjusting journal entries...

For each of the following transactions for the Sky Blue Corporation, prepare the adjusting journal entries required on October 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Collected $2,550 rent for the period October 1 to December 31, which was credited to Deferred Revenue on October 1. Paid $1,320 for a two-year insurance premium on October 1 and debited Prepaid Insurance for that amount. Used a machine purchased on October 1 for $48,600. The company estimates annual depreciation of $4,860.

Expert Solution

Adjusting entry :

Date	account and explanation	debit	credit
Oct 31	Deferred revenue (2550/3)	850
	Rent revenue		850
	(To record rent revenue adjusted)

Oct 31	Insurance expense (1320/24)	55
	Prepaid insurance		55
	(To record insurance expense)

Oct 31	Depreciation expense (4860/12)	405
	Accumlated depreciation-Machine		405
	(To record depreciation expense)

ekkarill92 answered 2 years ago

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