Question

a.??

Details of Prepaid Rent are shown in the? account:

                                               

Prepaid Rent
Jan	1	Bal.	5,500
Mar	31		11,000
Sept	30		11,000

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Contractors pays office rent semiannually on March 31 and September 30. At December? 31, part of the last payment is still available to cover January to March of the next year. No rent expense was recorded during the year.

b.

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Contractors pays its employees each Friday. The amount of the weekly payroll is

$ 5 comma 000$5,000

for a? five-day workweek, and the daily salary amounts are equal. The current accounting period ends on

TuesdayTuesday.

c.

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Contractors has lent money to help employees find? housing, receiving notes receivable in return. During the current year the entity has earned interest revenue of

$ 2 comma 800$2,800

from? employees' loans, which it will receive next year.

d.

The beginning balance of Supplies was

?$5 comma 9005,900.

During the? year, the company purchased supplies costing

?$30 comma 00030,000?,

and at

December 31December 31

the inventory of supplies remaining on hand is

?$6 comma 1006,100.

e.

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Contractors is installing cable in a large? building, and the owner of the building paid

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Contractors

?$56 comma 00056,000

as the annual service fee.

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Contractors recorded this amount as Unearned Service Revenue.

Robin ZweigRobin Zweig?,

the general? manager, estimates that the company has earned

seventy percentseventy percent

of the total fee during the current year.

f.

Amortization for the current year includes? Equipment,

?$32 comma 00032,000?;

and? Trucks,

?$51 comma 00051,000.

Make a compound entry. ?Hint: This means include all the accounts in one journal entry.

?(For your? convenience, the descriptions of the transactions shown in this? pop-up have been fully integrated into the directions for each journal entry so you may now close the? pop-up while solving this? problem.)

Answer 1

Journal entries
date	explanationa	debit	credit
a-	rent expense	22000
	prepaid rent		22000
b-	wages expenses	2000
	wages payable		2000
c	interest receivables	2800
	interest revenue		2800
d	supplies expense	29800
	supplies		29800
e-	unearned service revenue	39200
	service revenue		39200
f-	depreciation expense	83000
	accumulated depreciation-equipment		32000
	accumulated depreciation-truck		51000