Question

Record the adjusting entries into a horizontal grid:

g) On July 1, paid $24,000 to rent a building for the rest of 2018 and the first half of 2019

k) Wages of $8,400 earned by employees since the Dec 24 payroll were not yet paid.

m) Accrued $2,800 interest on an outstanding loan (promissory note).

n) Building rental expenses for the year, paid in transaction (g), had not yet been recorded.

o) Depreciation for the year on the equipment was $6,200

p) Income tax for the year was $9,000. It will be paid in 2019.

Answer 1

Particulars	Debit	Credit
Rent A/c	12000
Prepaid Rent A/c	12000
To Cash A/c		24000
(being the rent for the building paid for the 12 months that covers 6 months related to next year)
Wages A/c	8400
To Wages Payable A/c		8400
( being the wages payable to the employees)
Interest Expense A/c	2800
To Accrued Interest Expense A/c		2800
( being the interest Expense is accrued)
Depreciation A/c	6200
To Accumulated Depreciation A/C		6200
( being the depreciation recorded)
Income Tax A/c	9000
To Income Tax Payable A/c		9000
( being the income tax for the current year payable in the next year)