Question
(CO B) Adjusting entries: When the accounts of Upside Down Inc. are examined, the adjusting data listed below are uncovered on December 31, the end
(CO B) Adjusting entries: When the accounts of Upside Down Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of annual fiscal period. The prepaid insurance account shows a debit of $12,000, representing the cost of a 2-year fire insurance policy dated August 1 of the current year. On November 1, Rental Revenue was credited for $3,000, representing revenue from a sub-rental for a 3-month period beginning on that date. Interest of $3,000 has accrued on notes payable. You are to prepare the missing adjusting entry. For each journal entry write DR for debit and CR for credit.
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