Question

Hillside Apartments, Inc., adjusts and closes its books each December 31. Assume the accounts for all prior years have been properly adjusted and closed. Following are some of the company's account balances prior to adjustment on December 31, 2018: Problem 3-3 Prepare adjusting entries (2.0.4) Credits HILLSIDE APARTMENTS, INC. Partial Trial Balance December 31, 2018 Debits Prepaid Insurance $7,500 Supplies on Hand 7,000 Buildings 255,000 Accumulated Depreciation- Buildings Unearned Rent Salaries Expense 69,000 Rental Revenue $96.000 2,700 277,500 e ncial Reporting 35

Answer 1

Solution:

Journal Entries - Hillside Apartment Inc.
Date	Particulars	Debit	Credit
31-Dec-18	Insurance expense Dr	$3,000.00
	To Prepaid insurance		$3,000.00
	(To record insurance expense)
31-Dec-18	Supplies expense Dr	$5,750.00
	To Supplies		$5,750.00
	(To record supplies expense)
31-Dec-18	Depreciation expense Dr	$6,000.00
	To Accoumulated depreciation - Building		$6,000.00
	(To record depreciation on Building)
31-Dec-18	Salaries expense Dr	$3,000.00
	To Salaries payable		$3,000.00
	(To record salaries expense)
31-Dec-18	Interest receivables Dr	$250.00
	To Interest revenue		$250.00
	(To record interest earned)
31-Dec-18	Unearned rent Dr	$900.00
	To Rent revenue		$900.00
	(To record rent revenue)