question b

Print Homework-Chapter 2 Accessibility Mode Prepare December 31, 2018, adjusting entries for the Canton Trading Company for each of the following items: a. Canton borrowed $20,000 from its bank on May 1, 2018. The entry recorded at that time included a credit to notes payable for $20,000. No payments are due until 2019. The annual interest rate is 12%. b. On December 1, 2018, Canton collected rent of $3,600 (for December and January rent) from a tenant renting some space in its warehouse and credited deferred rent revenue for that amount. C. An inventory of office supplies on hand reveals a count of $900. The ledger reflects a balance in the office supplies account of $1,850. d. A one-year insurance policy insuring the company's truck was purchased on October 1, 2018. The entry at that time included a debit to prepaid insurance of $2,400. e. Depreciation expense for 2018 was $7,000