Prepaid Insurance $ 3,600 Supplies 3,500 Equipment 18,750 Accumulated Depreciation-Equipment $ 8,400 Notes Payable 21,000 Unearned Rent Revenue 11,000 Rent Revenue 62,000 Interest Expense 0 Salaries and Wages Expense 20,000 An analysis of the accounts shows the following. 1. The equipment depreciates $300 per month. 2. One-third of the unearned rent revenue was earned during the quarter. 3. Interest totaling $525 is accrued on the notes payable for the quarter. 4. Supplies on hand total $860. 5. Insurance expires at the rate of $200 per month.

Question

Business

Evelyn Wood

1 November, 00:41

Prepaid Insurance $ 3,600 Supplies 3,500 Equipment 18,750 Accumulated Depreciation-Equipment $ 8,400 Notes Payable 21,000 Unearned Rent Revenue 11,000 Rent Revenue 62,000 Interest Expense 0 Salaries and Wages Expense 20,000 An analysis of the accounts shows the following. 1. The equipment depreciates $300 per month. 2. One-third of the unearned rent revenue was earned during the quarter. 3. Interest totaling $525 is accrued on the notes payable for the quarter. 4. Supplies on hand total $860. 5. Insurance expires at the rate of $200 per month.

+5

Answers (1)

Know the Answer?

Quentin Lewis · Answer 1

1. Depreciation expense 3600

Accumulated depreciation 3600

2. Unearned rent 330666

Rental income 330666

3. Interest expense 2100

Interest payable 2100

4. Cost of goods manufactured 2640

Supplies 2640

5. Insurance expense 2400

Prepaid insurance 2400

Explanation:

depreciation for the year = 300*12=3600

2. Earned rent was 62000/3*4=330666

3. Interest expense for the year = 525*4=2100

4. opening supplies were 3500 and ending were 860 so (3500-860) = 2640 were consumed and 860 will be reported to balance sheet.

5. Opening prepaid insurance was = $3600

Insurance was expense out at the rate of $200 per month = 200*12=$2400

$1200 shall be reported to balance sheet.