7 Date 8 9 Account and Explanation Jul 31 Prepaid Rent Cash To record rent expense. (Four months of rent was prepaid earlier in the month Calculation: 10 11 12 13 31 14 15 16 To record office supplies used (A physical count revealed $750 of office supplies on hand at the end of the month) Calculation: 17 18 31 19 20 21 To record depreciation on furniture. (The furniture has a residual value of $4,000, and estimated useful life of five years. Use straight line Calculation: 22 23 31 24 25 26 To record depreciation on the building (The building has a residual value of $25,000, and estimated useful life of 20 years. Use straight line Calculation: 27 28 31 29 30 31 32 31 33 34 35 36 37 31 38 39 40 41 31 42 43 To record service revenue earned that was collected in advance. (Cedar River has earned $14,000 of the revenue that had been collected in advance. To accrue salaries expense (Cedar River pays $3,000 every Friday for a five-day work week - Monday through Friday July 31 is a Tuesday Accrue two days of salaries) Calculation: To accrue interest expense. (One month's interest on the Note Payable is $300. To accrue service revenue. (Revenue of $900 has been earned. The client will pay next month DR 24,000 CR 24,000 Transactions for July 2024 1 Four months of rent was prepaid earlier in the month. 2 A physical count revealed $750 of office supplies on hand at the end of the month. 3 The furniture has a residual value of $4,000, and estimated useful life of five years. Use straight line depreciation. The building has a residual value of $25,000, and estimated useful life of 20 years. Use straight line 4 depreciation. 5 Cedar River has earned $14,000 of the revenue that had been collected in advance. Cedar River pays $10,500 every Friday for a five-day work week - Monday through Friday. July 31 is a 6 Tuesday. Accrue two days of salaries. 7 One month's interest on the Note Payable is $500. 8 Revenue of $1200 has been earned. The client will pay next month