1) Present, in journal form, the adjustments that would be made on July 31, 2018,...
60.1K
Verified Solution
Link Copied!
Question
Accounting
1) Present, in journal form, the adjustments that would be made on July 31, 2018, the end of the fiscal year, for each of the following.
A. The supplies inventory on August 1, 2017 was $9,350. Supplies costing $24,150 were acquired during the year and charged to the supplies inventory. A count on July 31, 2018 indicated supplies on hand of $8,810.
B. On April 30, a ten-month, 6% note for $30,000 was received from a customer
C. On May 1, $20,000 was collected as rent for one year and a nominal (temporary) account was credited.
I have a question about C.
Answer said 20,000 *(9/12) = 15,000
Rent Revenue (Corrects for prior entry) 15,000
Unearned Rent Revenue 15,000
But Why do we have to use nine instead of three
Because I think May 1 - July 31 has three month
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
