Question

For each of these transactions, events, or facts, record the necessary journal entry.

a.	Received an $6,000 advance to provide services in the future
b.	Provided services that were paid for in a), above
c.	Paid a $3,000 two-year insurance policy in advance
d.	Accrued $5,000 rent expense to be paid next month
e.	Recorded $4,000 depreciation on plant assets
f.	Purchased $2,000 supplies with cash
g.	Sold $9,000 of inventory for $11,000 on account
h.	Recognized the expiration of one year of insurance policy purchased in c
i.	Received cash for inventory sold in g)
j.	Recorded $1,000 amortization of intangible assets
k.	Paid $900 utility expense at year end
l.	Recognized $700 interest incurred, but not paid, on debt
m.	Accrued $1,200 royalties earned at year end

Answer 1

Journal

a	Cash	6,000
	Unearned service revenue		6,000
b	Unearned service revenue	6,000
	Service revenue		6,000
c	Prepaid insurance	3,000
	Insurance expense		3,000
d	Rent expense	5,000
	Rent payable		5,000
e	Depreciation expense	4,000
	Accumulated depreciation - Plant assets		4,000
f	Supplies	2,000
	Cash		2,000
g	Sales	11,000
	Accounts receivables		11,000
	Cost of goods sold	9,000
	Inventory		9,000
h	Insurance expense	1,500
	Prepaid insurance		1,500
i	Cash	11,000
	Accounts receivables		11,000
j	Amortization expense	1,000
	Accumulated amortization - Intangible assets		1,000
k	utility expense	900
	Cash		900
l	Interest expense	700
	Interest payable		7000
m	Royalty receivable	1,200
	Royalty revenue		1,200