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Below are transactions for a company during Year 1. 1. On October 1, Year 1, the company lends $7,600 to another company. The other
Below are transactions for a company during Year 1. 1. On October 1, Year 1, the company lends $7,600 to another company. The other company signs a note indicating principal and 6% interest will be paid to the company on September 30, Year 2. 2. On November 1, Year 1, the company pays its landlord $2,400 representing rent for the months of November through January. The payment is debited to Prepaid Rent for the entire amount. 3. On August 1, Year 1, the company collects $11,520 in advance from another company that is renting a portion of the company's factory. The $11,520 represents one year's rent and the entire amount is credited to Deferred Revenue. 4. Depreciation on machinery is $4,100 for the year. 5. Salaries for the year earned by employees but not paid to them or recorded are $3,600. 6. The company begins the year with $800 in supplies. During the year, the company purchases $4,100 in supplies and debits that amount to Supplies. At year-end, supplies costing $2,100 remain on hand.
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