Question
Q1 Has 6 distinct subsections based off the information below: On October 1, 2021, Hurricane lends $7,100 to another company. The other company signs a
Q1 Has 6 distinct subsections based off the information below:
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On October 1, 2021, Hurricane lends $7,100 to another company. The other company signs a note indicating principal and 12% interest will be paid to Hurricane on September 30, 2022.
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On November 1, 2021, Hurricane pays its landlord $1,650 representing rent for the months of November through January. The payment is debited to Prepaid Rent for the entire amount.
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On August 1, 2021, Hurricane collects $10,920 in advance from another company that is renting a portion of Hurricanes factory. The $10,920 represents one year's rent and the entire amount is credited to Deferred Revenue.
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Depreciation on machinery is $3,600 for the year.
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Salaries for the year earned by employees but not paid to them or recorded are $3,100.
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Hurricane begins the year with $550 in supplies. During the year, the company purchases $3,600 in supplies and debits that amount to Supplies. At year-end, supplies costing $1,600 remain on hand.
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