[kizzyb]

Billy's word processing service, which ended its fiscal year on March 31, 2002, had the following information available for its accountant:

(a) Equipment rent of 7,200 was paid for three months on March I. the payment was debited to the equipment rent expense account.
Dr. unearned rent 7,200
Cr. Eqyipment rent expense 7,200

(b) On February 1, the company paid 2,400 for one-year insurance policy. The payment was debited to the insurance expense account.
Dr. prepaid insurance 2,400
Cr. Insurance expense 2,400

(c) The office supplies account showed a balance of 2,471 prior to adjustment. An inventory count showed supplies of 687 on hand.

Dr. supplies 687
Cr. Supplies expense 687

So I will reverse entries by turning it around.

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Fleeson,s Insurance Agency shows the following information as of December 31, 20x2 the end of its, fiscal year:

(a)Three month's rent 2,100 was received from a tenant on December 1. The amount was credited to the rent income account.
DR.Rent income 2,100
CR. Rent received 2,100

(b) The unearned insurance income account shaws a balance of 766,000 prior to adjustment on December 31. Of this amount, 123,500 will not be earned until 20x3.
Dr.Insurance income 642,500
Cr.Insurance received 642,500

(c)Fleeson received 3000 on June 1, 20x2, for a one-year lease. The receipt was recorded as a credit to the unearned Lease Income account.
DR.unearned lease income 3,000
Cr. Lease expense 3,000

Then would I reverse entries just by turning it around.

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I'm very confuse on this

Cole Motor Hotel finds three items of revenue unrecorded ath end of its fiscal year on December 31, 20x1. First, Interest of 9% is due on a 10,000 three month note that is dated December 1, 200x1. Next hotel guests are not billed until they have vacated their rooms. Four rooms were occupied by guests from December 29, 20x1 through January 2, 20x2 at a rate of 99 per room per day. None of these guests will be billed until January 2, 20x2. Third unbilled restaurant charges of guests for the last few days of December amount to 320.

Directions:
1. Record the March 31, 20x2 adjusting entries.
2. record the April 1 20x2 reversing entries.

[kizzyb]

So can someone check my work.

[CaptainForest]

Note: you seem to be confusing debits and credits.

If it is an asset: DEBIT = INCREASE; CREDIT = DECREASE
If it is a liability = CREDIT = INCREASE; DEBIT = DECREASE
If it is revenue = CREDIT = INCREASE; DEBIT = DECREASE
If it is an expense = DEBIT = INCREASE; CREDIT = DECREASE


Another Note: You seem to get confused on adjusting entries.

Rule of Thumb: If a question asks you for ADJUSTING ENTRIES, 99% of the time, you will have to do some form of calculation and the number in your journal entries will NOT be the same number as the paragraph description.

Billy's word processing service, which ended its fiscal year on March 31, 2002, had the following information available for its accountant:

(a) Equipment rent of 7,200 was paid for three months on March i. the payment was debited to the equipment rent expense account.
Dr. unearned rent 7,200
Cr. eqyipment rent expense 7,200

7,200 for 3 months. 1 month used up.
1/3 x 7200 = 2,400

Dr. Equipment Expense 2,400
Cr. Prepaid Equipment 2,400

(b) On february 1, the company paid 2,400 for one-year insurance policy. The payment was debited to the insurance expense account.
Dr. prepaid insurance 2,400
Cr. insurance expense 2,400

Please see my notes from the other day. You buy a 1 yr policy beg of Feb. you only accure 2/12 (Feb and march…2 months).
So you don’t you 2400, rather 2/12*2400 = 400

Dr. Insurance Expense 400
Cr. Prepaid Insurance 400

(c) The office supplies account showed a balance of 2,471 prior to adjustment. An inventory count showed supplies of 687 on hand.

Dr. supplies 687
Cr. supplies expense 687

You need to get inventory DOWN to 687. So take it down by 1,784.

Dr. Supplies Expense 1,784
Cr. Supplies 1,784

So i will reverse entries by turning it around.

Pretty much.

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Fleeson,s Insurance Agency shows the following information as of December 31, 20x2 the end of its, fiscal year:

(a)Three month's rent 2,100 was received from a tenant on December 1. The amount was credited to the rent income account.
DR.Rent income 2,100
CR. Rent received 2,100

See my comments from the above problem.
Calculation: 2100 * 1/3 = 700

Dr. Unearned Revenue 700
Cr. Rent Income 700

(b) The unearned insurance income account shaws a balance of 766,000 prior to adjustment on December 31. Of this amount, 123,500 will not be earned until 20x3.
Dr.Insurance income 642,500
Cr.Insurance received 642,500

Dr. Insurance received/Unearned 642,500
Cr.Insurance Income 642,500

(c)Fleeson received 3000 on June 1, 20x2, for a one-year lease. The receipt was recorded as a credit to the unearned Lease Income account.
DR.unearned lease income 3,000
Cr. Lease expense 3,000

Then would i reverse entries just by turning it around.

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Calculation: 3,000*7/12 = 1,750

Dr. Unearned Lease Income 1,750
Cr. Lease Revenue 1,750

[kizzyb]

Can someone help me

[kizzyb]

I had three pages but only two got looked at.