Question

a e Question 6 unting dates View Policies Current Attempt in Progress hents A review of the ledger of Ivanhoe Company at December 31, 2017, produces these data pertaining to the preparation of annual adjusting entries Prepaid Insurance $21.473. The company has separate Insurance policies on its buildings and its motor vehicles. Policy B4561 on the building was purchased on July 1, 2016, for $13,110. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2017 for $10.548. This policy has a term of 18 months. Unearned Rent Revenue 5602,160. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease. Support Term in months) Monthly Rent 10 $5.020 $8.360 Number of Leases Date Nov. 1 Dec. 1 3. Notes Payable $40,000. This balance consists of a note for 6 months at an annual interest rate of 7%, dated October 1. 4. Salaries and Wages Payable 50. There are 10 salaried employees. Salaries are paid every Friday for the current week. 5 employees receive a salary of 5630 each per week, and 5 employees earn $715 each per week. Assume December 31s Wednesday Employees do not work weekends. All employees worked the last 3 days of December Prepare the adjusting entries at December 31, 2017. no entry is required, select "No Entry for the account titles and enter for the amounts Credit accountities are automatically indented when the amount is entered. Do not indent manually) No. Account Titles and Explanation Debit Credit Search

Answer 1

No.	Account Titles and Explanation	Debit	Credit
1	Insurance Expenses	11402
	To Prepaid Insurance		11402
	(Expired Insurance expenses booked)
2	Unearned Rent Revenue	110400
	To Rent Revenue		110400
	(Booked earned rent incomed)
3	Interest Expenses	714
	To Interest Payable		714
	(Booked interest accrued on note)
4	Salaries and wages expenses	4035
	To Salaries and wages payable		4035
	(Unpaid salary booked)

Working Note

1. Insurance

Policy B4564 = 13110/3*1 = 4370

Policy A2958 = 10548/1.5*1 = 7032

2. Rent Revenue

= (2 months * 5020 * 6 contract ) + (1 months * 8360 * 6 Contract) =110400

3. Interest Expenses

= 40800 * 7% * 3/12 = 714

4. Salaries and wages

= (630 * 5+ 715 *5)*3/5 = 4035