Answer: Explanation:
depreciation expense 10,000 debit
accumulated depreciation 10,000 credit
wages expense 1,500 debit
wages payable 1,500 credit
interest expense 150 debit (5,000 x 12%/12 months x 3 months)
interest payable 150 credit
<em>we multiply the principal by rate and time but, the rate is annual so we divide by 12 to convert to monthly</em>
interest receivable 1,333.33 debit (20,000 x 8%/12 x 10)
interest revenue 1,333.33 credit
<em>we multiply the principal by rate and time but, the rate is annual so we divide by 12 to convert to monthly</em>
<em />
insurance expense 250 debit (6,000/24 x 9 months)
prepaid insurance 250 credit
<em>we divide the contract by months of duration. Then we multiply by the month expired</em>
<em />
<em>cash 1,600 debit</em>
<em> unearned revenue 1,600 credit</em>
<em />
rent expense 1,200 debit
prepaid rent 1,200 credit