Answer:
supplies expense 13069 debit
supplies 13069 credit
insurance expense 12,844 debit
prepaid insurance 12,844 credit
depreciation expense 16,375 debit
acc dep- building 16,375 credit
rent receivable 2,000 debit
rent revenue 2,000 credit
unearned revenue 3,624 debit
rent revenue 3,624 credit
Explanation:
<u>cosumption of supplies:</u>
beginning 3,075
purchases 12,700
ending (2,706)
expense 13,069
<u>insurance:</u>
April 1st 24 months 10,824
April 1st 36 months 9,576
August 1st 12 months 8,400
<u>expired insurance:</u>
10,824 x 8/24 = 7,216
9,576 x 8/36 = 2,128
8,400 x 5/12 = <u> 3,500 </u>
total 12,844
for depreicaiton we recognize the amount per year
the rent earned is only Decemeber so we recognize for that amount
then we have the other tenant which pais 5 months, 2 has expired so we accrued for that:
1,812 x 2 = 3,624
