Question

record the necessary journal entries required at the end of January. Prepaid rent for the year on January 1, 2019. Rent expired during the month of January 2019, $2,000. Purchased supplies for $7,600 on January 1, 2019. Inventory of supplies was $1,600 on January 31, 2019. Depreciation is computed using the straight-line method. Equipment purchased on January 1, 2019, for $15,000 has an estimated useful life of 5 years with no salvage value. Signed a 3-month contract for $600 of prepaid advertising on January 1, 2019.

Answer 1

1.on payment- prepaid rent dr

to cash

31 jan-recording for jan rent rent dr 2000

to prepaid rent account 2000

2.purchase of supplies supplies 7600

cash 7600

31 jan for recording consumption of supplies supply exp 6000

to supplies 6000

3.for Fixed asset purchased equipment 15000

cash 15000

For recording dep (15000/5*12) depreciation exp 250

accumulated depreciation 250

4. for payment of prepaid advertising prepaid advertising 600

cash 600

for recording advertising for jan advertising exp 200

prepaid advertising 200