Question

I need help with this problem please! Thank you!

Answer 1

Journal No. Date Accounts Debit Credit 1 31-Dec Salaries & Wages Expense 2,976 Salaries & Wages Payable (Salaries & Wages Expense recorded) $ 2,976 2 31-DecUnearned Rent Revenue $90,360 Rent Revenue $90,360 (Rent Revenue recorded) 3 31-Dec Advertising Expense $ 6,030 $ 6,030 Prepaid Advertising (Advertising Expense recorded) 4 31-Dec Interest Expense $ 3,376 Interest Payable (Interest Expense recorded) $ 3,376

calculations are given below -

calculation of salaries expense for 4 employees salary per working day $1,180/5 $236 total salary expense $236 2 4 $1,888 for 4 employees salary per working day $680/5 $136 total salary expense $136 2 4 $1,088 total salaries expense $1,888+$1,088 $2,976 rent revenue to be recogonised for 2 months for lease started on nov 1 $4,080 2 6 $48,960 2 for 1 month for lease started on dec 1 $10,350 * 1* 4 41,400 total rent revenue $48,960+$41,400 $90360

advertising expense to be recogonise on contract A650 $7560/12 8 $5,040 on contract B974 $7,920/24 3 $990 total advertising expense $5,040$990 $6,030 interest expense on notes payable $82,680 * 7% * 7/12-$3,376 4