Answer:
1. Insurance expires at the rate of $450 per month.
Dr Insurance expense 450
Cr Prepaid insurance 450
2. A count of supplies shows $1,140 of unused supplies on May 31.
Dr Supplies expense 1,460
Cr Supplies 1,460
3. (a) Annual depreciation is $2,880 on the building.
Dr Depreciation expense 240
Cr Accumulated depreciation, building 240
(b) Annual depreciation is $2,280 on equipment.
Dr Depreciation expense 240
Cr Accumulated depreciation, equipment 190
4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)
Dr Interest expense 168
Cr Interest payable 168
5. Unearned rent of $2,510 has been earned.
Dr unearned revenue 2,510
Cr Rent revenue 2,510
6. Salaries of $880 are accrued and unpaid at May 31.
Dr Wages expense 880
Cr Wages payable 880
