a. Details of Prepaid Rent are shown in the account: Prepaid Rent Sep 30 dan 1 Bal 5 100 Mar 31 10.200 10 200 Lumber Construction pays office rent semi-annually on March 31 and September 30 At December 31 part of the last payment is still available to cover January to March of the next year. No rent expense was recorded during the year b. Lumber Construction has lent money to help employees find housing, receiving notes receivable in return During the current year the entity has earned interest revenue of $2,800 from employees loans which it will receive next year. c. The beginning balance of Supplies was $6 500 During the year, the company purchased supplies costing $18,000, and at December 31 the inventory of supplies remaining on hand is $6,300 d. Lumber Construction is installing cable in a large building and the owner of the building paid Lumber Construction S50 000 as the annual service fee. Lumber Construction recorded this amount as Unearned Service Revenue. Paula Morin, the general manager, estimates that the company has earned 15 percent of the total fee during the current year e Lumber Construction pays its employees each Friday. The amount of the weekly payroll is $6 200 for a five-day workweek, and the daily salary amounts are equal. The current accounting period ends on Thursday 1. Amortization expenses for the current year includes Equipment $14,000 and Trucks S43.000 Record this as a compound entry Details of the proped Rent account reveal a beginning balance of 35.100 md debts the account on Heren 31 o4810200 and on September 30 dt510200. Lumber Construction par ctica rent semanuely on March 31 and September 30 m December 31, part of the testament silver to March of the holy Record the rent perse for the year anded December 11. No rent sapiente was recorded during the year. Record debits first, then tredits Enterplanations on the last Journal Entry Dale Accounts Credit Det 30 b. Lumber Construction has sent money to pomies tadhouting, receiving to receivable in tum During the current you wanty has earned interest revenue of $2.800 from employee loans which will receive next you Record the street ned daring the cutent year Journal Entry Accounts De Crea Ded Date c. The beginning balance of Supplies was $8.500 During the year, the company purchased supplies costing $18.000, and at December 31, the inventory of supplies remaining on hand is $8.300 Record the supplies expense for the year Journal Entry Date Accounts Debit Credit Dec 31 d. Lumber Construction insteling cabin large building and the of the building puber Construction $50.000 as the user to Lumber Construction conded this montos Uncome Service Revenge Paula Morin, the gener mongest that the company has come 15 percent of the funge cure your Record the service revendred at December Journal Date Account Creo 31 . Lumber Construction pays es employees each Friday. The amount of the weeky payroll is 36,200 3.vo dey wowok, and the daily salary amounts are equal. The current accounting period ends on Thursday Record the accrual for salaries at December 31 Journal Entry Accounts Debit Credit Dec 31 1. Amortization for the current year includes Equipment, $14,000, and Trucks, $43,000 Record this as a compound entry Hint: This means include all the accounts in one journal entry Record the compound entry to record the amortization Journal Entry Credit Date Accounts Debit Dec 31
