Severn Snowmobile Rentals had the following selected transactions during January:
Jan. 1 Paid cash for three months' rent on the showroom building (January, February, and March), $4,200.
5 Paid electricity expenses, $600 cash.
9 Received cash for the day's snowmobile rentals, $1,800.
14 Paid cash for a snowmobile, $6,000. It is expected to last three years.
23 Rented snowmobiles to a corporate group for a team-building event, $1,950. The corporation will pay in 30 days.
31 Made an adjusting entry for January's rent (from January 1).
31 Accrued salary expense for January, $850.
Show how each transaction would be handled using the accrual basis of accounting. Assume the company initially records a prepaid expense as an asset. Give the amount of revenue or expense for January. Journal entries are not required. Use the following format for your answer, and show your computations:
Severn Snowmobile Rentals-Amount of Revenue or Expense for January
Date.............................Revenue or Expense........................................Amount