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The business has interest expense of $3,700 that it must pay early in January 2017.

Journal Entry

	Accounts	Debit	Credit
a.

b. Interest revenue of

$4 comma 2004,200

has been earned but not yet received.

Journal Entry

	Accounts	Debit	Credit
b.

c. On July 1, 2016,when the business collected 13,000 rent in advance, it debited Cash and credited Unearned Rent Revenue. The tenant was paying for two years' rent.

	Journal Entry
	Accounts	Debit	Credit
c.

d. Salary expense is 5,800 per day-Monday through Fridayhandthe business pays employees each Friday. For the purpose of this calculation, assume December 31 falls on a Thursday.

Journal Entry

	Accounts	Debit	Credit
d.

e. The unadjusted balance of the Supplies account is $2,900. The total cost of supplies on hand is $1,000.

Journal Entry

	Accounts	Debit	Credit
e.

f. Equipment was purchased on January 1 of this year at a cost of 80,000. The equipment's useful life is five years. There is no residual value. Record depreciation for this year and then determine theequipment's book value.

Journal Entry

	Accounts	Debit	Credit
f.

Determine the equipment's book value.

The equipment's book value is $

.

The business has interest expense of

$ 3 comma 700$3,700

that it must pay early in

JanuaryJanuary

20172017.

b.

Interest revenue of

$4 comma 2004,200

has been earned but not yet received.

c.

On

JulyJuly

1,

20162016,

when the business collected

$13 comma 00013,000

rent in advance, it debited Cash and credited Unearned Rent Revenue. The tenant was paying for two years' rent.

d.

Salary expense is

$5 comma 8005,800

per

daylong dashMonday

through

Fridaylong dashand

the business pays employees each Friday. For the purpose of this calculation, assume

DecemberDecember

31 falls on a Thursday.

e.

The unadjusted balance of the Supplies account is

$2 comma 9002,900.

The total cost of supplies on hand is $ 1 comma 000.$1,000.

f.

Equipment was purchased on January 1 of this year at a cost of

$80 comma 00080,000.

Theequipment's useful life is five years. There is no residual value. Record depreciation for this year and then determine the equipment's book value.

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