Question

At December 31 of the current year, Cullen Corporation had a number of items that were not reflected in its accounting records. Maintenance and repair costs of $770 were incurred but not paid. Utilities costing $240 were used but not paid, and use of a warehouse space worth $1,900 was provided to a tenant who had not been billed as of the end of the month. Record the required adusting entries related to these events.

Answer 1

Answer:

Cullen Corporation

Adjusting Journal Entries:

Debit Maintenance and Repairs Expense $770

Credit Accounts Payable $770

To record costs incurred but not yet paid for.

Debit Utilities Expense $240

Credit Utilities Payable $240

To record utilities expense incurred but not yet paid for.

Debit Rent Receivable $1,900

Credit Rent Revenue $1,900

To record rent revenue due.

Explanation:

a) Data and Analysis:

Maintenance and Repairs Expense $770 Accounts Payable $770

Utilities Expense $240 Utilities Payable $240

Accounts Receivable $1,900 Rent Revenue $1,900