Question

1 Angela is a tenant of Bruce. On July 1, Angela paid Bruce $3,600 for 3 months of rent. On July 31, Bruce's adjusting entries will include a debit to:

2 Which of the following appears on an adjusted trial balance? Multiple Choice The ending balance of Retained Earnings Dividends Gross profit Net income

3 The unadjusted trial balance of Sketch Star Makers Inc., prepared as of December 31, 2018, includes the following account balances. All of the accounts listed have normal balances. Cash $ 15,000 Accounts Receivable 3,000 Supplies 3,000 Prepaid Insurance 6,800 Equipment 20,000 Accumulated Depreciation 3,000 Notes Payable (long-term) 30,000 Deferred Revenue 10,000 Service Revenue 40,000 Salaries and Wages Expense 35,000 The following information is also available: A) A count of supplies revealed $1,400 worth on hand at December 31, 2018. B) An insurance policy, purchased on January 1, 2018, covers four years. C) The equipment depreciates at a rate of $2,000 per year; no depreciation has been recorded for 2018. D) One half (or 50%) of the amount recorded as Deferred Revenue remains deferred as of December 31, 2018. E) The accrued amount of salaries and wages at December 31, 2018 is $3,000. Required: Prepare the required adjustments for the company as of December 31, 2018.

Answer 1

1)

Dear student, only one question is allowed at a time. I am answering the fkirst question

Bruce is the landlord. When amount is received by him on July 1, following entry will be passed

Cash    $3,600

    Unearned rent revenue    $3,600

(Being advance rent received for 3 months)

Rent per month

= Total amount received / number of months

= $3,600 / 3

= $1,200

At the end of the month, one month’s rent has been earned and so following entry will be passed

Unearned rent revenue     $1,200

    Rent revenue                     $1,200

(Being rent earned for one month transferred from unearned rent account)

So, the debit will be to the Uneaqrned rent revenue account