Prepaid insurance represents a three-year premium paid

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Reference no: EM131822847

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.

Reference no: EM131822847

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