[encuz]

1. The note receivable were issued on June 1 is $126,000. The annual interest rate on the notes is 12%. Interest is to be received each year on May 31, accordingly, no interest has been received.

2. The unearned fee revenue represents cash received in advance on February is $270,000. It is expected that the fees will be earned evenly over three year contract period. As of December 31, no revenue had yet been recognized on this contract.

3.The prepaid rent represents cash paid in advance on October 1 is $216,000. This $216,000 relates to five year rental agreement that began on October 1. As of December 31, no expenses had yet been recognized in association with this rental agreement.

4. As December 31, unpaid( and unrecorder) wage totaled $22,000.

Please help Me to make adjusting journal entries, Thanks Everyone!

[pready]

1. You need to calculate the interest that has been earned from Jun 1 to the end of your accounting period. Then your adjusting entry is Debit Interest Receivable for the amount because you have not received it yet, and Credit Interest Revenue for the amount because you have earned this interest.

2. you need to calculate the unearned revenue that is earned for the accounting period. Your acocunts will be Unearned Revenue and Earned Revenue.

3. You need to calcule the rent that has been used during the period. Your acocunts are Prepaid Rent and rent Expense.

4. the amount is given, your accounts are Wages Expense and Wages Payable.

[encuz]

My aswers are:

1. 1 June
Note receivable (D) $126,000
Account receivable (C) $126,000

31 May
Account receivable (D) $141,120
Interest income (C) $15,120 (126,000X12%)
Note receivable (C) $126,000

2. 1 February
Cash (D) $ 270,000
Unearned revenue (C) $270,000

31 December
Unearned revenue (D) $7,500 ($270,000/36 Months=3years)
Service Revenue (C) $7,500

3. 1 October
Prepaid Rent (D) $216,000
Cash (C) $216,000

31 December
Rent Expenses (D) $3,600
Prepaid rent (C) $3,600

4. 31 December
Wage Expenses (D) $22,000
Wage Payable (C) $22,000

I stiil confused with my answers, please correct me, Thanks Everyone!