Question

In: Accounting

Journal Entry Worksheet a) On April 2, the company prepaid $9,000 cash for twelve months' rent...

Journal Entry Worksheet

  • a) On April 2, the company prepaid $9,000 cash for twelve months' rent for office space.

  • b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage began on April 1.

  • c) Office supplies on hand as of April 30 total $1,200.

  • d) Straight-line depreciation of office equipment, based on a 5-year life and a $4,000 salvage value, is $500 per month.

  • e) The company has completed work for a client, but has not yet billed the $1,800 fee.

  • f) Wages due to employees, but not yet paid, as of April 30 total $2,600.

Solutions

Expert Solution

Account Titles Debit Credit
(a) Rent Expense $           750 =9000/12
       Prepaid Rent $             750
(b) Insurance Expense
       Prepaid Insurance
c Office Supplies Expense
       Office Supplies
d Depreciation Expense $           500
       Accumulated Depreciation $             500
e Accounts Receivable $        1,800
       Service Revenue $         1,800
f Wages Expense $        2,600
        Wages Payable $         2,600

Insurance Expense = Prepaid Insurance / 12
Office Supplies expense = Office Supplies unadjusted balance - $1200


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