Question

The following events pertain to Super Cleaning Company 1. Acquired $16,300 cash from the issue of common stock.2. Provided $14,300 of services on account3. Provided services for $5,300 cash.4. Received $3,700 cash in advance for services to be performed in the future.5. Collected $10,300 cash from the account receivable created in Event 2.6. Paid $6,300 for cash expenses.7. Performed $1.850 of the services agreed to in Event 4.8. Incurred $2,800 of expenses on account.9. Paid $1.750 cash in advance for one-year contract to rent office space. 10. Paid $2.450 cash on the account payable created in Event 811. Paid a $2,800 cash dividend to the stockholders. 2. Recognized rent expense for nine months use of office space acquired in Event 9

Answer 1

Answer:

cash 16,300 debit

 common stock   16,300 credit

account receivabes 14,300 debit

 service revenue 14,300 credit

cash   5,300 debit

   service revenue 5,300 credit

cash     3,700 debit

  unearned revenue 3,700 credit

cash   10,300 debit

  accounts receivables 10,300 credit

operating expenses 6,300 debit

                   cash                      6,300 cedit

unearned revenue 1,840 debit

    service revenue    1,840 credit

operating expenses 2,800 debit

       accounts payable    2,800 credit

prepaid rent     1,750 debit

         cash              1,750 credit

accounts payable    2,450 debit

               cash                  2,450 credit

dividends          2,800 debit

          cash              2,800 credit

rent expense 1,312.5 debit

    prepaid rent     1,312.5 credit

Explanation:

for the last entry, we adjust for the expired amount. Given the contract value we divide by the 12 months it last and multiply by the 9 expired month

1,750 x 9 months / 12 months = 1.312,5‬ expired rent