HOMEWORK ATTACHED

E-3-19 Journalize the adjusting entry needed at December 31 for each of the following independent situations. a. On October 1, we collected $4,000 rent in advance, debiting Cash and crediting Unearned Rent Revenue. The tenant was paying one year's rent in advance. At December 31, we must account for the amount of rent we've earned. b. Salary expense is $1,500 per day---Monday through Friday---and the business pays employees each Friday. This year December 31 falls on a Tuesday. c. The adjusted balance of the Supplies account is $3,100. Supplies on hand total $1,200. d. Equipment was purchased last year at a cost of $10,000. The equipment useful life is four years. Record the year's depreciation. e. On September 1, when we prepaid $1,200 for a two-year insurance policy, we debited Prepaid Insurance and credited Cash. E3-15 Suppose you start up your own photography business to shoot videos at college parties. The freshmen class pays you $100 in advance just to guarantee your services for its party. The sophomore class promises you a minimum of $250 for filming it formal, and you end up collecting cash of $400 for this party. Answer the following questions about the correct way to account for your revenue under the accrual basis a. When did you earn revenue for both parties? What caused you to earn the revenue? Did you earn the revenue at the moment you received the cash? b. In addition to cash, what type of account was created when you received $100 from the freshman class? Name the new account? P3-31A Tee's Golf School completed the following transactions during January Jan 1 Prepaid insurance for January through March, $300. 4 Performed service (gave golf lessons) on account, $2,200. 5 Purchased equipment on account, $1,900. 8 Paid property tax expense, $450. 11 Purchased office equipment for cash, $800. 19 Performed service and received cash, $700 24 Collected $400 on account 26 Paid account payable from January 5. 29 Paid salary expense, $900. 31 Recorded adjusting entry for January insurance expense (see Jan 1) 31 Debited unearned revenue and credited revenue to adjust the accounts, $600. Requirement 1. Show how each transaction would be handled using the accrual basis of accounting. Give the amount of revenue or expense for January. Journal entries are not required. Use the following format for your answer, and show your computations: Amount of Revenue (Expense) for January Date Revenue (Expense) Accrual-Basis Amount of Revenue (Expense) 2. Compute January net income or net loss under the accrual basis of accounting. 3. State why the accrual basis of accounting is preferable to the cash basis