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-   -   Double entry accounting (https://www.askmehelpdesk.com/showthread.php?t=291824)

  • Dec 13, 2008, 06:00 PM
    asolmon94
    Double entry accounting
    How do I prepare adjusting entries for the following:
    a.insurance policy exam shows $1,240 of expired insurance
    b.inventory count showed $210 of unused shop supplies availale
    c. $800 of Unearned rent account balance was earned by year end
    d. One month's interest on notes payable $600, has accrued but is unrecorded
    e. A beautician is behind on space rent. And $200 of accrued revenue was unrecorded

    I haven't done this type of accounting in 15 years and I am at aloss
  • Dec 14, 2008, 06:00 AM
    pready

    a. Debit Insurance Expense for 1,240
    Credit Prepaid Insurance for 1,240

    b. Debit Shop Supplies Expense for the amount used
    Credit Shop Supplies for the Amunt used
    Note: amount used is the difference between Inventory at Beiginning of period + Purchase (if any) - Ending Inventory.

    C. Debit Unearned Rent Revenue for 800
    Credit Rent Revenue for 800

    D. Debit Interest Expense for the amount of Interest
    Credit Interest Payable for the amount
    Note to compute the amount the formula is:
    Interest = Principle * Interest Rate * #months used/12

    E. Debit Accounts Receivable for 200
    Creedit Rent Revenue for 200
  • Jan 20, 2009, 12:14 PM
    tamika thompson
    Bought a motor van on credit fro speed and sons for6980
  • Jan 22, 2009, 03:11 PM
    pready

    Debit Vehicle for 6,980
    Credit Accounts Payable for 6,980

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