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is the unearned account fees on july 31 5500 or 61000? THE FOLLOWING ARE MY ADJUSTMENTS Problem 12.2A Recording adjustments for accrued and prepaid expense
is the unearned account fees on july 31 5500 or 61000?
THE FOLLOWING ARE MY ADJUSTMENTS
Problem 12.2A Recording adjustments for accrued and prepaid expense items and unearned income. LO 12-2, 12-3 On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow DATE TRANSACTIONS July 1 Signed a lease for an office and issued Check 101 for 12,450 to pay the rent in advance for six months. 1 Borrowed money from Second National Bank by issuing a four-month, 12 percent note for $40,000 received $38,400 because the bank deducted the interest in advance 1 Signed an agreement with Carter Corp. to provide accounting and tax services for one year at $5,500 per month; received the entire fee of $66, 000 in advance. 1 Purchased office equipment for $19,300 from Office Outfitters; issued a two-month, 12 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,300 salvage value. The equipment wil be depreciated using the straight-line method 1 Purchased a one-year insurance policy and issued Check 102 for $1,668 to pay the entire premium. 3 Purchased office furniture for $12,280 from Furniture Warehouse; issued Check 103 for $8,440 and agreed to pay the balance in 60 days. The equipment has an estimated usefullife of four years and a $1,000 salvage value. The office furniture will be depreciated using the straight-line method 5 Purchased office supplies for $1,890 with Check 104. Assume $840 of supplies are on hand July 31, 2019 Required: 1. Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 2019 2. Record the adjusting journal entries that must be made on July 31, 2019 Debit Credit General Journal Date Jul 01, 2019 No 12,450 Prepaid rent 12,45 Cash Jul 01 Cash 2019 38,400 1,60 2 Prepaid interest Notes payable 40,00 66,000 Jul 01,Cash 2019 66,00 Unearned accounting fees 19,300 Jul 01, 2019 4 Office equipment 19,30 Notes pavable 1,668 Jul 01, 2019 Prepaid insurance Jul 03, 2019 2,280 Office furniture Cash Accounts payable 8,44 3,840 Jul 05, 2019 1,890 7 Supplies Cash 1,89 No Credit Date Jul 31, 2019 General Journal Debit Rent expense 2,07 Prepaid rent 2,07 Jul 31, 2019 2 Interest expense 40 Prepaid interest 40 Jul 31, 2019 5,500 Unearned accounting fees Accounting fees 5,50 19 Jul 31, 2019 4 Interest expense 19 Interest pavable Jul 31, 2019 30 Depreciation expense-Office equipment 30 Accumulated depreciation-Office equipmen 13 Jul 31, 2019 Insurance expense 13 Prepaid insurance Jul 31, 2019 23 7 Depreciation expense-Office furniture 23 Accumulated depreciation-Office furniture Jul 31, 2019 Supplies expense 1,050 Supplies 1,050V
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