Answer:
Collected $2,400 rent for the period October 1 to December 31
which was credited to Deferred Revenue on October 1.
Account Receivable Assets Decrease -2400
Deferred revenue Liabilities Decrease -2400
Paid $1,200 for a two-year insurance premium on October 1 and debited Prepaid Insurance for that amount.
Expense insurance Equity Decrease -1200
Prepaid amount Asset Decrease -1200
Used a machine purchased on October 1 for $48,000. The company estimates annual depreciation of $4,800.
4800 12 400 3 1200
Expense depreciation Equity Decrease -1200
Depreciation accumulate Asset Decrease -1200
Explanation:
Collected $2,400 rent for the period October 1 to December 31
which was credited to Deferred Revenue on October 1.
Account Receivable Assets Decrease -2400
Deferred revenue Liabilities Decrease -2400
Paid $1,200 for a two-year insurance premium on October 1 and debited Prepaid Insurance for that amount.
Expense insurance Equity Decrease -1200
Prepaid amount Asset Decrease -1200
Used a machine purchased on October 1 for $48,000. The company estimates annual depreciation of $4,800.
4800 12 400 3 1200
Expense depreciation Equity Decrease -1200
Depreciation accumulate Asset Decrease -1200