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Talja [164]
3 years ago
15

When the accounts of Sunland Inc. are examined, the adjusting data listed below are available on December 31, the end of the ann

ual period.
1. Interest has accrued on a $28,800, 6% note payable, issued on May 1.
2. On September 1, Rent Revenue was credited for $7,800, representing revenue from a subrental for a 6-month period beginning on that date.
3. Purchase of supplies for $2,110 during the year was recorded in the Supplies Expense account. On December 31, supplies of $540 are on hand.
Prepare the adjusting entry for each item. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 2. 3.
Prepare the reversing entry for each item where appropriate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit
Business
1 answer:
7nadin3 [17]3 years ago
8 0

Answer:

Sunland Inc.

Adjusting Journal Entries:

Account Titles and Explanation     Debit      Credit

Interest Expense                            $1,152

Interest Payable                                          $1,152

To record accrued interest for 8 months.

Rent Revenue                               $2,600

Deferred Revenue                                       $2,600

To record deferred rent revenue for 2 months.

Supplies Expense                         $1,570

Supplies                                                       $1,570

To record supplies expense for the period.

Explanation:

a) Data and Calculations:

1. Interest Expense $1,152 Interest Payable $1,152 ( $28,800 * 6% * 8/12)

2. Rent Revenue $2,600 Deferred Revenue $2,600 ($7,800 * 2/6)

3. Supplies Expense $1,570 Supplies $1,570 ($2,110 - $540)

b) The above adjusting journal entries are made in order to reverse the earlier entries made.  The purpose is to bring the accounts in line with the accrual concept and the matching principle of generally accepted accounting principles.  These require that expenses and revenues for the period are matched and recognized whether or not cash is exchanged.

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Answer:

b. supply is represented graphically by a curve and quantity supplied as a point on that curve. 

Explanation:

Qunatity supplied shows how qunatity of a product changes in response to changes in  price of that good. According to the law of supply, the higher the price of good, the higher the quantity supplied and the lower the price of a good, the lower the quantity supplied.  This shows that quantity supplied has a direct relationship with price.

Changes in quantity supplied is shown by movement along a supply curve.

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I hope my answer helps you

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4 0
3 years ago
Read 2 more answers
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