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    Dell's Avatar
    Dell Posts: 20, Reputation: 1
    New Member
     
    #1

    Feb 19, 2006, 02:34 PM
    Journalize Transactions
    The following transactions took place during the month of December;

    Dec. 5 Received a check for $30 representing interest due on marketable securities.

    Interest Receivables $30 DR
    Interest Income $30 CR

    Is this correct?:


    Dec.19 Received $125 from clients on account.

    Cash $125 DR
    Accounts Receivables $125 CR

    Is this correct?


    Dec.22 Invested another $1,000 in high-grade marketable securities.

    Marketable Securities $1,000 DR
    Cash $1,000 CR

    Is this correct?


    Dec.23 Received a check from Fender shop for $150, payment on account.

    Cash $150 DR
    Accounts Receivables $150 CR

    Is this correct?


    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.

    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?

    I really appreciate any help I can get.

    Thanks,
    Dell
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
     
    #2

    Feb 19, 2006, 03:05 PM
    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
    Dell's Avatar
    Dell Posts: 20, Reputation: 1
    New Member
     
    #3

    Feb 19, 2006, 05:00 PM
    Thank you again. Are you a teacher? Your explanation are really good to understand.

    Take care,
    Dell
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
     
    #4

    Feb 19, 2006, 05:14 PM
    Your welcome.

    Lol, no, I'm not a teacher. Although I have taught this to someone before.
    kymberleea17's Avatar
    kymberleea17 Posts: 1, Reputation: 1
    New Member
     
    #5

    Apr 20, 2017, 11:27 AM
    Unexpired office rent amounted to $6,040. How do I journalize this entire

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