Question
Selected accounts of Ideal Properties, a real estate management firm, are shown below as of January 31, 2019, before any adjusting entries have been made.
Selected accounts of Ideal Properties, a real estate management firm, are shown below as of January 31, 2019, before any adjusting entries have been made.
Debits | Credits | ||||
---|---|---|---|---|---|
Prepaid insurance | $6,660 | ||||
Supplies inventory | 1,930 | ||||
Office equipment | 5,952 | ||||
Unearned rent liability | $5,250 | ||||
Salaries expense | 3,100 | ||||
Rent revenue | 15,000 |
Monthly financial statements are prepared. Using the following information, record the adjusting entries necessary on January 31 (a) using the financial statements 1. Prepaid Insurance represents a three-year premium paid on January 1, 2019. 2. Supplies of $850 were still available on January 31. 3. Office equipmentpurchased on January 1, 2019is expected to last eight years. 4. On January 1, 2019, Ideal Properties collected six months rent in advance from a tenant renting space for $875 per month. 5. Accrued employee salaries of $490 have not been recorded as of January 31.
Record the adjusting entry made on January 31, 2019 for each of the above transactions.
Cash | Noncash | Contra | Contrib. | Earned | Net | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Transaction | Asset | + | Assets | - | Assets | = | Liabilities | + | Capital | + | Capital | Revenues | - | Expenses | = | income | ||||
1.Prepaid insurance premium. | ||||||||||||||||||||
2. Supplies used during January. | ||||||||||||||||||||
3. Office equipment purchased on January 1. | ||||||||||||||||||||
4.Rent collected in advance on January 1. | ||||||||||||||||||||
5. Accrued salaries not recorded as of January 31. |
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