Question
Need help journaling (a) October 7: Entered into a lease agreement for bakery space. The agreement is for one year. The rent is $1,500 per
Need help journaling
(a) October 7: Entered into a lease agreement for bakery space. The agreement is for one year. The rent is $1,500 per month; the last months rent payment of $1,500 is required at the time of the lease agreement. The payment was made in cash. Lease period is effective October 1 of this year through September 30 of the next.
(b) November 15: Paid rent on bakery space.
(c) December 15: Paid rent on bakery space $1,500.
On December 31, the following adjustments must be made
Depreciation of baking equipment transferred to company on October 13. Assume half month of depreciation in October using the straight-line method.
- Accrue interest for note payable. Assume a full month of interest for October. (6% annual interest on $10,000 loan)
- Record insurance used for the year.
- Actual baking supplies on hand as of December 31 are $1,100.
- Office supplies on hand as of December 31 are $50.
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