Adjusting Entries Selected accounts of Ideal Properties Inc., a real estate management firm, are shown below as of January 31, before any adjusting entries have been made:
|
|
Debit
|
Credit
|
|
Prepaid Insurance
|
$6,840
|
|
|
Supplies
|
2,100
|
|
|
Office Equipment
|
6,240
|
|
|
Unearned Rent Revenue
|
|
$5,400
|
|
Salaries Expense
|
3,250
|
|
|
Rent Revenue
|
|
16,000
|
|
|
|
|
Monthly financial statements are prepared. Using the following information, record in a general journal the adjusting entries necessary on January 31:
a. Prepaid Insurance represents a three-year premium paid on January 1.
b. Supplies of $975 were on hand January 31.
c. Office equipment is expected to last eight years . Depreciation is recorded monthly.
d. On January 1, the firm collected six months' rent in advance from a tenant renting space for $925 per month.
e. Accrued salaries not recorded as of January 31 are $510.