Answer:
insurance expense 11,986 debit
prepaid insurance 11,986 credit
unearned revenue 84,000 debit
rent revenue 84,000 credit
interest expense 1,800 debit
interest payable 1,800 credit
salaries expense 2,000 debit
salaries payable 2,000 credit
Explanation:
<u>expired insurance</u>
Policy B4564 adjustment:
15,510 / 36 months x 12 months = 5,170
Plicy A2958 adjusment:
10,224 / 18 months x 12 months = 6,816
Total insurance expense: 11,986
<u>earned revenue:</u>
monthly rent x accrued month x number of lease
$5,000 x 2 months x 5 lease = 50,000
$8,500 x 1 months x 4 lease = 34,000
total 84,000
<u>interest calculations:</u>
principal x rate x time
120,000 x 9% x 2/12 = 1,800
<u>salaries accrued:</u>
5 employees x 700 each x 2/5 days = 1,400
3 employees x 500 each x 2/5 days = 600
Total accrued wages: 2,000
