Question
Each of the following independent events requires a year-end adjusting entry. Paid $9,100 cash in advance on July 1 for a one-year lease on office
Each of the following independent events requires a year-end adjusting entry.
Paid $9,100 cash in advance on July 1 for a one-year lease on office space. Purchased $2,800 of supplies on account on April 15. At year-end, $260 of supplies remained on hand. Received a $8,800 cash advance on July 1 for a contract to provide services for one year beginning immediately. Paid $3,500 cash in advance on February 1 for a one-year insurance policy. Required Record each event and the related adjusting entry in general journal format. The first event is recorded as an example. Assume a December 31 closing date. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Credit Date Account Titles July 1 Prepaid rent Cash Debit 9,100 9,100 Dec. 31 4,550 Rent Expense (9,100 x 6/12) Prepaid rent 4,550 View transaction list X: 1 Record supplies purchase on account. > 2 Record adjusting entry for supplies expenses. 3 Record cash received in advance for services to be provided. 4 Record adjusting entry for unearned revenue. Credit 5 Record cash paid in advance for a one-year insurance policy. 6 Record adjusting entry for prepaid insurance. Note : = journal entry has been entered Record entry Clear entry View general journalStep by Step Solution
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