Independent Situations

a$.$ On April $1,$ a business collected $$12,000$ rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. On December $31,$ the business must account for the amount of rent it has earned.

b$.$ The unadjusted balance of the Supplies account is $$2,600.$ Supplies on hand total $$700.$

c$.$ The business purchased equipment on August $1$ at a cost of $$59,100$ with expected useful life of four years. The residual value of the equipment is $$1,500.$

d$.$ The business receives $$4,000$ on November $1$ for $10-$month service contract for the period November $1$ through August $31.($When the cash was received on November $1,$ assume that a liability account was credited. Assume services are performed evenly each month throughout the term of the contract.$)$

e$.$ On October $1,$ when the business prepaid $$1,200$ for a two$-$year insurance policy, the business debited Prepaid Insurance and credited Cash.