1) On March 1, 2020, Kidney Inc sells a 4 year subscription to fava inc. for $9,600.

Accounting 301: Homework 3 (2 points) Unearned Revenue / Prepaid Expenses 1) On March 1, 2020, Kidney Inc sells a 4 year subscription to Fava Inc. for $9,600. Prepare the journal entries for Kidney and Fava to record the transaction Kidney Inc 2) Prepare the Adjusting Journal Entries (AJEs) for Kidney and Fava as of March 31, 2020 Kidney Inc Fava Inc. Fava Inc. 3) What is the balance in Kidney's Unearned Revenue account as of March 31, 2020? Uneamed Revenue / Prepaid Expenses continued 4) What is the balance in Fava's Prepaid Expense account as of September 30, 2020? 5) How much revenue will Kidney recognize in 2020? What is the balance in kidney's Unearned Revenue account as of December 31, 2020? 6) How much expense will Fava recognize in 2021? What is the balance in fava's Prepaid Expense account as of December 31, 2021? Accrued Revenue /Accrued Expense During the month of February 2020, Super Snake Plumbing Inc provides plumbing services to Back Up Inc. valued at $1,500 7) What are the journal entries for Super Snake and Back Up if Super Snack bills for these services on February 28, 20207 8) What are the AJEs that Super Snake and Back Up would record if Super Snack does not bill Back Up during the month of February? 9) Assuming both companies booked AJES on February 29, what journal entry would each record when Super Snake bills Back Up on March 10, 2020? Depreciation On April 1, 2020 Easy Rider Inc purchases 10 motorcycles for use in its business. Each motoreycle costs $25,000. Easy Rider expects to use the motorcycles to generate revenue for five years and belves at the end of 5 years they can sell each motorcycle for $1,000 10) What is the total purchase price of the motorcycles? 11) Prepare the journal entry to record the purchase of the motorcycles. 12) What is the total salvage value for all 10 motorcycles? 13) What is the useful life in months? 14) What is the amount of monthly deprecation expense Easy Rider will record? 15) Prepare the journal entry to record one month's depreciation. 16) What is the Net Book Value of the motorcycles on March 31, 2021? Closing Journal Entries Trial Balance for Honey Do Inc. as of December 31, 2020 Account Account Name DR CR Cash 42,000 Accounts Receivable 6,000 Accrued Revenue 1,500 Inventory 1,200 Prepaid Expense 2,400 Equipment 40,000 Accumulated Depreciation 2,400 Accounts Payable 5,100 Accrued Expense 1,700 Uneamed Revenue 3,600 Stock 40,000 Retained Earnings 18,000 Dividends 1,400 Revenue 50,000 Expenses 26,300 TOTAL 120,800 120,800 17) Prepare Financial Statements for Honey Do Inc. as of December 31, 2020 Income Statement for Honey Do Inc. for the 12 months ending December 31, 2020 Statement of Retained Earnings for Honey Do Inc. for the 12 months ending December 31, 2020 Closing Journal Entries continued Balance Sheet for Honey Do Inc. as of December 31, 2020 18) Prepare the Closing Journal Entries for Honey Do Inc. to prepare for the start of business on January 1, 2021