On

April

1, a business collected

$3,600

rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year's rent in advance. At December 31, the business must account for the amount of rent it has earned.

a.On April 1, a business collected $3,600 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.Salaries expense is $1,000 per dayMonday through Fridayand the business pays employees each Friday. This year December 31 falls on a Thursday.

c.The unadjusted balance of the Office Supplies account is $3,100. Office supplies on hand total $1,700.

d.Equipment depreciation was $700.

e.On July 1, when the business prepaid $3,600 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash.

Date			Accounts and Explanation	Debit	Credit
(a) Dec. 31

b. Salaries expense is

$1,000

per

dayMonday

through

Fridayand

the business pays employees each Friday. This year December 31 falls on a

Thursday.

Date			Accounts and Explanation	Debit	Credit
(b) Dec. 31

c. The unadjusted balance of the Office Supplies account is

$3,100.

Office supplies on hand total

$1,700.

Date			Accounts and Explanation	Debit	Credit
(c) Dec. 31

d. Equipment depreciation was

$700.

Date			Accounts and Explanation	Debit	Credit
(d) Dec. 31

e. On

July

1, when the business prepaid

$3,600

for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash.

Date			Accounts and Explanation	Debit	Credit
(e) Dec. 31