Answer:
1. December 31
Dr Rent expense 2,400
Cr Prepaid rent $2,400
2. Dr Deferred revenue $750
Service revenue $750
3. December 31
Dr Salaries expense $700
Cr Salaries payable $700
4. December 31
Dr Supplies expense $3,200
Cr Supplies $3,200
Explanation:
Preparation of Journal entries
1. Since Rent expense for 6 months is the
amount of $7,200 this means that the Rent expense for 2 months which is November and December will be calculated as 7,200 x 2/6
= $2,400 and recorded as :
December 31
Dr Rent expense 2,400
Cr Prepaid rent $2,400
( To record rent expense)
2. Based on the information given we were told that by year end the amount of $750 of the services have been provided which means that the Journal entry will be.
December 31
Dr Deferred revenue $750
Service revenue $750
( To record service revenue)
3. Based on the information given we were told that the an additional amount of $700 in salaries is owed to employees but will not be paid until January 4 which means that the Journal entry will be :
December 31
Dr Salaries expense $700
Cr Salaries payable $700
( To record salaries expense)
4. Since Supplies expense which is calculated as Beginning supplies 1,700+ Supplies purchases 2,300- Ending supplies 800 will gives us $3,200 the Journal entry for supplies will be recorded as :
December 31
Dr Supplies expense $3,200
Cr Supplies $3,200
( 1,700+2,300-800)
( To record supplies expense)
