Answer:
Journal entries
1.
Dr Depreciation expense 10,500
Cr Accumulated depreciation office equipment 10,500
2.
Dr Salaries and wages expense 1,000
Cr Salaries and wages payable1,000
3.
Dr Interest expense1,530
Cr Interest payable1,530
4.
Dr Interest receivable 1,400
Cr Interest revenue 1,400
5.
Dr Prepaid insurance 8,750
Cr Insurance expense 8,750
6.
Dr Supplies expense 380
Cr Supplies 380
7.
Dr Sales revenue 1,400
Cr Deferred revenue 1 400
8.
Dr Rent expense 700
Cr Prepaid rent 700
Explanation:
Calculation for Interest expense
($51,000 × 12% × 3/12) = $1,530
Calculation for Interest receivable ($21,000 × 8% × 10/12) = $1,400
Calculation for Prepaid insurance ($7,000 × 15/12) = $8,750
Calculation for Supplies expense ($1,000 − 620) = $380
