Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Auditing Technique For Securing Privacy In Cloud Storage Cloud Server Security

Authors: Sri Nagesh, Vankamamidi Srinivasa Naresh

1st Edition

6202523689, 978-6202523684

More Books

Students also viewed these Accounting questions