Question

Rochelle Lee Chapter 3 Homework Assignment structions: Use the space provided to prepare the appropriate journal entry. Assume adjusting entries are made at the end of each month. 1. a. On March 1 we paid $1.000 cash for supplies. Dr. Supplies Obo Cr. CASO ODD rch 31, we counted the supplies and determined that $300 in supplies had been pense 4 300 300 b. On March 31, we counte consumed during the period. Dr. Cr. SOP 2.a. On March 1, we prepaid $3,6 in March 1, we prepaid $3,600 for a one-year insurance policy. Dr. tropoid Turoncs6 360 Cr. Ash .On March 31, record the use of this policy for one month 30 Dr. Suronte EPS 200 - Prepond Insurance a. On March 1, we purchased an automobile for $30,000 cash. The automobile has a useful life of 5 years. Dr. Automobiles $30,000 Cr. Cash 530 b. Record the depreciation associated with this automobile on March 31. Dr. Depreciation Spense Automobiles 50 Cr. Automobiles s 500 a. On March 10, we received $10,000 for services not yet rendered. Dr. Ash 10,000 cr. Unewned sorna Revenue & 10,oou b. As of March 31, we performed $4,000 in services related to the March 10th payment above. Dr. Unsaned service Revenue 4000 Cr. Service Revenue *4000 4 On March 31, we owed out employees $3,000 for salaries and wages. Dr. Salaries Glperse 300 Cr. Salaries Paurble 3 00 7. On March 31, we performed services for customers totaling $2,000 - the invoices have not yet been sent, and thus, this transaction has not been recorded. Dr. Accounts Receivable 2000 Cr. Service fees eamed 2000 a. On March 1, we took out a note from the bank totaling $100,000 with an annual interest rate of 12%. is 100,ooo Cr. Note Payable 100,000 b. As of March 31, no interest payments had been made. Accrue for the interest owed as of March 31. Dr. Iterest Expense 1000 Cr. Interest paypble iooo Dr. CAS

Answer 1

Date	Account Title	Debit	Credit
1) a	supplies	$             1,000
	cash		$             1,000
	(to record cash paid for supplies)
b	Supplies expenses	$                 300
	supplies		$                 300
	(to record supplies mused)
2)a	Prepaid Insurance	$             3,600
	Cash		$             3,600
	( to record 1-year insurance policy paid in prepaid)
b	Insurance expenses	$                 300
	prepaid insurance		$                 300
	( to record insurance expenses for march)
3) a	Automobile ( Fixed Asset )	$           30,000
	Cash		$           30,000
	( to record automobile purchased on cash )
b	Depreciation expenses	$                 500
	accumulated depreciation		$                 500
	($30000/5*1/12)
	to record depreciation expenses for march )
4)a	Cash	$           10,000
	Unearned Service Revenue		$           10,000
	( to record unearned service revenue)
b	Unearned Service revenue	$             4,000
	Service Revenue		$             4,000
	( to record service revenue for the march)
5)	Salaries expenses	$             3,000
	salaries payable		$             3,000
	( to record accrued salaries)
6)	Account Receivables	$             2,000
	Service Revenue		$             2,000
	( to record accrued revenue)
7)	Cash	$       1,00,000
	Note Payable		$       1,00,000
	( to record borrowing through note)
	Interest Expenses	$             1,000
	Interest Payable		$             1,000
	(100000*12%*1/12)
	(to record accrued interest expenses)