Question

prepare general journal entries on Dec 31 to record the following unrelated year end adjustments.

a. On October 1, the company received 4 months rent in advance from a tenant whose rent is $650 per month. The $2,000 was credited to the Unearned Rent account.

b.) The prepaid insurance account has a $5,200 debit balance before adjustment. An examination of insurance policies shows $800 of unexpired insurance.

c.) The company collects rent revenue monthly from its tenants. One tenant whose rent is $825 per month has not paid his rent for November and December.

d.) The prepaid Insurance account has a $3,700 debit balance before adjustment. An examination of insurance policies shows $1,050 of insurance expired.

e.) Estimated depreciation on a copy machine for the office for the year is $1,500.

f.) The company has four office employees who each earn $150 per day for a five day work week that ends on Friday. The employees were paid on Friday, Dec 27, and have worked full days on Monday and Tuesday, December 30 and 31

Answer 1

sr no	particulars	debit	credit
1	unearned rent	$                   1,350.00
	to rent revenued		$         1,350.00
2	insurance	$                   4,400.00
	to pre paid insurance		$         4,400.00
3	rent recievlable	$                   1,650.00
	to rent revneue		$         1,650.00
4	insurance	$                   1,050.00
	to pre paid insurance		$         1,050.00
5	dep	$                   1,500.00
	to office machine		$         1,500.00
6	salaries	$                   1,200.00
	to salary payable		$         1,200.00
	it is assumed that salaries are paid for only 5 days ie from Monday tofriday
	saturand and Sunday is holiday so no salaries are paid for Saturday and Sunday

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