Answer:
Journal entries are given below
Equipments book value = $144,000
Explanation:
We can journalize each situation by debiting the expenses, assets, and by crediting liabilities, capital, and income given in the situation.
A. To record Interest Expense Payable in January
DEBIT CREDIT
Interest Expense $3,200
Interest Payable $3,200
b. To record Interest Revenue Earned but not Received
DEBIT CREDIT
Interest Receivable $4,100
Interest Revenue $4,100
c. To recognize Unearned Rent Revenue for the Period July to December
DEBIT CREDIT
Unearned Rent Revenue $3,000
(12,000*1/2*6/12)
Rent Revenue $3,000
d. To record Salary due for 4 days from Monday to Thursday
DEBIT CREDIT
Salary Expense $24,400
(6,100*4)
Salary Payable $24,400
e. To recognize the Supplies Expense at year end
DEBIT CREDIT
Supplies Expense $1,900
(3,200 - 1,300)
Supplies $1,900
f. To record depreciation for the current year
DEBIT CREDIT
Depreciation Expense $36,000
(180,000/5)
Accumulated Depreciation $36,000
Equipments book value = Cost of Equipment - Depreciation
Equipments book value = 180,000 - 36,000
Equipments book value = $144,000
