| Dec. 5 Received a check for $30 representing interest due on marketable securities.
Interest Receivables $30 DR
Interest Income $30 CR
Is this correct?:
NO. It is either
Dr. Cash 30
Cr. Interest Receivables 30 OR Cr. Interest Income 30
It depends if you have already accrued it or not. It depends when you year end is. If your year end is Dec. 31, then you would Cr. Interest Income.
Dec.19 Received $125 from clients on account.
Cash $125 DR
Accounts Receivables $125 CR
Is this correct?
YES
Dec.22 Invested another $1,000 in high-grade marketable securities.
Marketable Securities $1,000 DR
Cash $1,000 CR
Is this correct?
YES
Dec.23 Received a check from Fender shop for $150, payment on account.
Cash $150 DR
Accounts Receivables $150 CR
Is this correct?
YES
Dec.30 Wrote off $100 of prepaid rent as of November 30 to rent expense for December.
Pre-paid Rent $100 DR not sure if it's correct and don't know which account to credit.
Help.
Dr. Rent EXPENSE 100
Cr. Prepaid Rent 100
Dec.31 Unexpired insurance premiums amounted to $1,800 as of December 31.
Insurance Expense $1,800 Dr
Pre-paid Insurance $1,800 CR
Is this correct?
No.
You have the accounts right, just the amounts wrong.
This is saying that you have 1,800 of insurance left.
So you need to take the value of the pre-paid insurance and subtract 1800 from it.
So if the value of the prepaid insurance is 3,000, then you record
Insurance Expense $1,200 Dr
Pre-paid Insurance $1,200 CR
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