Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I would like to know if all is correct. Thanks Date Transaction Amount January 31 One month has passed on a pre-paid insurance policy intially
I would like to know if all is correct. Thanks
Date | Transaction | Amount | |
January 31 | One month has passed on a pre-paid insurance policy intially worth $12,000 | $ 2,000 | |
February 15 | Company completes $7,300 of services for a client who had previously pre-paid $10,000 in advance | 7,300 | |
February 28 | Employees earn $17,000 in salary but this will not be paid until the next pay period in March | 17,000 | |
March 15 | An inventory of supplies reveals $2,350 worth has been consumed since they were purchased | 2,350 | |
March 31 | Depreciation allocated on Fixed Assets for the quarter | 28,170 | |
Journal | ||||
Date | Account | Debit | Credit | |
Jan 31 | Insurance Expense | $ 2,000 | ||
Prepaid Insurance | $ 2,000 | |||
Used one month of 6-month $12,000 pre-paid policy | ||||
February 15 | Account Receivable | $ 10,000 | ||
Service Revenue | $ 10,000 | |||
February 28 | Salary Expense | $ 17,000 | ||
Salary Payable | $ 17,000 | |||
March 15 | Supplies Expense | $ 2,300 | ||
Supplies | $ 2,300 | |||
March 31 | Depreciation Expense | $ 28,170 | ||
Accumulated Depreciation | $ 28,170 | |||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started