Author Question: Read each transaction and identify which journal the transaction should be recorded. 1 . Recorded ... (Read 85 times)

humphriesbr@me.com · **on:** Jul 5, 2018

Read each transaction and identify which journal the transaction should be recorded. 1 . Recorded adjusting journal entry for accrued interest. 2 . Performed advising services on account. 3 . Purchased office supplies on account. 4 . Borrowed money for expansion project. 5 . Received 500 from Tool Tech. on account. 6 . Owner withdrew cash for personal use. 7 . Paid monthly rent. 8 . Recorded depreciation on equipment. 9 . Completed Job 34aG for services provided to Beard Co 10 . Purchased inventory on account.

Question 2

A business keeps its accounts on a calendar-year basis. On January 1, 2013, there is a balance of 2,800 in the Prepaid insurance account.

The insurance represented by that amount expires on March 31, 2013, but the business makes no entry to record the expiration of the insurance until its year-end. On April 1, 2013, the business pays 16,000 for an insurance policy covering the period April 1, 2013 - March 31, 2014 . Prepare the journal entry at December 31, 2013, to record the full amount of insurance expense for the year.

What will be an ideal response?

aliotak · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

1 . General journal
2 . Revenue journal
3 . Purchases journal
4 . Cash receipts journal
5 . Cash receipts journal
6 . cash payments journal
7 . Cash payments journal
8 . General journal
9 . Revenue journal
10 . Purchases journal

Answer to Question 2

Insurance expense 14,800
Prepaid insurance 14,800

Note: Amount is 2,800 + (3/4 of 16,000)