Use the information given below to pass ONLY the adjusting entries at the time of preparing the financial statements. The financial statements are prepared at the end of every month.
This is the beginning of January month and the firm undertakes the following transaction on 01st of January. Pass all relevant adjusting entries for the below transactions at the end of month of January.
Adjusting Entries | ||||||
S.No. | Date | Account Titles | Debit $ | Credit $ | ||
a. | 31 January | Rent Expense | 1,000 | |||
Prepaid rent | 1,000 | |||||
( 12,000 / 12 ) | ||||||
b. | 31 January | Depreciation Expense | 833 | |||
Accumulated Depreciation- Machine | 833 | |||||
( 100,000 / 10 ) x 1/12 | ||||||
c. | 31 January | Interest Expense | 1,000 | |||
Interest Payable | 1,000 | |||||
( 120,000 x 10% x 1/12 ) | ||||||
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