Recording Adjusting Entries (Assume December 1st Flashcards
1
Q
On September 1st, Company collected 6 months rent of $9,600 for storage space. Cash was debited and Unearned Revenue was credited.
A
Debit Unearned Revenue (-L) $64,000
Credit Rent Revenue (+R,+SE) $64,000
2
Q
On October 1st, company borrowed $18,000 from local bank for one year, 12% note. Principal and interest are payable on maturity date
A
Debit Interest Expense (+E,-SE) $540
Credit Interest Payable (+L) $540
3
Q
Depreciation of $3,500 to be recognized on service truck
A
Debit Depreciation Expense (+E,-SE) $3,500
Credit
