The ledger of pharoah rental agency on march 31 of the current year includes the following selected accounts before adjusting entries have been prepared.
debit
credit
prepaid insurance $3,636
supplies 2,530
equipment 25,940
accumulated depreciation-equipment $8,705
notes payable 19,740
unearned rent revenue 7,530
rent revenue 64,330
interest expense –0–
salaries and wages expense 12,880
an analysis of the accounts shows the following.
1. the equipment depreciates $265 per month.
2. one-third of the unearned rent was earned as revenue during the quarter.
3. interest of $550 is accrued on the notes payable.
4. supplies on hand total $680.
5. insurance expires at the rate of $303 per month.
prepare the adjusting entries at march 31, assuming that adjusting entries are made quarterly. additional accounts are depreciation expense, insurance expense, interest payable, and supplies expenses. (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 0 for the amounts.)
2-skysong crusher is a licensed cpa. during the first month of operations of her business (a sole proprietorship), the following events and transactions occurred.
april 2 invested $27,070 cash and equipment valued at $12,900 in the business.
2 hired an administrative assistant at a salary of $255 per week payable monthly.
3 purchased supplies on account $833. (debit an asset account.)
7 paid office rent of $546 for the month.
11 completed a tax assignment and billed client $1,160 for services rendered. (use service revenue account.)
12 received $2,589 advance on a management consulting engagement.
17 received cash of $2,201 for services completed for ferengi co.
21 paid insurance expense $100.
30 paid administrative assistant $1,020 for the month.
30 a count of supplies indicated that $122 of supplies had been used.
30 purchased a new computer for $5,266 with personal funds. (the computer will be used exclusively for business purposes.)
journalize the transactions in the general journal. (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 0 for the amounts. record journal entries in the order presented in the problem.)