Rent expenses 2400 2. Jan Haley owns and operates Haley's Dry...
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Rent expenses 2400 2. Jan Haley owns and operates Haley's Dry Cleaners. The following occurred during December: a. On December 1, Haley prepaid rent on her store for December and January with $2,000 cash. b. December 1, Haley purchased insurance of $2,400 that will last six months. c. Haley paid $900 of her accounts payable balance. d. Haley paid off all of her salaries payable balance. e. Haley purchased supplies on account in the amount of $2,400. f. Haley paid her assistant of $1,000 in cash for work done in the first two weeks of December g. Haley dry-cleaned clothes for customers on account in the amount of $8.000. h. Haley collected $6,300 of her accounts receivable balance. i. Haley paid tax of $750 in cash. Required: Prepare the journal entry for each transaction. Prepare T-accounts (numbers already under the accounts are the prior balance in that account). Opening T-Account Balances Cash 5,000 Accounts Receivable 6,500 Prepaid Rent 0 Prepaid Insurance 0 Supplies 0 Accounts Payable 1,200 Salary Payable 1,000 Note Payable 4,000 Capital Stock 3,000 Retained Earnings 2,300 Sales Revenue 0 Supplies Expense 0 Salary Expense Rent Expense 0 Insurance Expense 0 Tax Expense 0 1
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