Deadweight loss occurs when
1 answer:
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Answer: Please refer to Explanation
Explanation:
A. To record this period's depreciation expense. will match with
5. Depreciation Expense 38,217 Accumulated Depreciation 38,217
When recording the depreciation for the period, depreciation account is debited as it as an expense and an increase in Expenses is debited. The figure is credited to the Accumulated Depreciation account as it will reduce the Assets Account.
B. B. To record accrued salaries expense
6. Salaries Expense 13,280
Salaries Payable 13,280
As an expense, salaries are debited to show that they have increased. Salaries Expense account will therefore be debited for 13,280. The credit will be sent to the Salaries Payable account which is a liability account to show that the company owes those salaries as a liability.
C. To record this period's use of a prepaid expense
Insurance Expense 3,180
Prepaid Insurance 3,180
To record that the prepaid expense has now been used, the insurance expense account is debited and because Prepaid Expense is an asset, reducing it will be done by Crediting it.
D. To record accrued interest revenue
Interest Receivable 3,300
Interest Revenue 3,300
Revenue is credited when it increases so the Interest Revenue Account for the period will be credited. The Interest Receivable account will be debited because it is being reduced and as a revenue account reduces by debiting.
E. To record accrued interest expense
Interest Expense 2,208
Interest Payable 2,208
Insurance is an expense and so when it is being accounted for in the period, it is debited. It is credited to the Interest Payable account because it is a Liability account which increases by credit.
F. To record the earning of previously unearned income.
Unearned Professional Fees 19,250
Professional Fees Earned 19,250
As the Professional fees are revenue, they will be credited to the Professional Fee Earned account to show that it is an increase in revenue.
