Question 3

For each of the following transactions for the Banner Company, complete the journal entries by indicating the account that is debited (Dr) and the amount, followed by the account that is credited and the amount. Choose from the account name abbreviations below AND PLEASE SPELL THEM CORRECTLY IN YOUR ANSWER or Blackboard will mark your answer wrong. Assume that Banner prepares financial statements monthly.

CASH = Cash, PPDINS = Prepaid Insurance, EQ= Equipment, AD = Accumulated Depreciation, UNREV = Unearned Revenue, LP = Loan payable, IP = Interest payable,REV = Service Revenue, INSEXP = Insurance expense, DEPEXP = Depreciation expense, INTEXP = Interest expense

1. Banner purchased equipment on January 1 2018, for $250,000. The monthly depreciation is $1,250. What should Banner record on January 1, when the equipment is purchased?
   1. Dr.
   2. Cr.
2. What should Banner record on January 31, 2018, related to the equipment purchased in (1)?
   1. Dr.
   2. Cr.
3. What should Banner record on February 28, 2018, related to the equipment purchased in (1)?
   1. Dr.
   2. Cr.