Rental receipts (cash) received $43,000
Cash paid for insurance $5,000
Cash Paid for taxes $6,000
Cash received from sale of used equipment $11,000
Of the rental receipts collected, $2,000 was reported as rent receivable at September 30, and $3,500 was a prepayment of November's rent. An insurance premium of $1,000 was owed at the end of October. Taxes of $1,000 and $700 were owed at October 31, respectively. Equipment sold in October had a book value (cost minus accumulated depreciation of $12,200 at the time of sale.
Required:
Q1. Determine rental income for October 2005
Q2. Determine insurance expense for October 2005
Q3. Determine tax expense for October 2005
Q4. Assuming the accumulated depreciation on the equipment sold was $1,300 what is the appropriate journal entry to record the used equipment?