Adjusting Entries III

1 Unearned Service Revenue 42,000.00

Service Revenue 42,000.00
To recognize earned revenue

2 Supplies Expense 6,920.00

Supplies 6,920.00
To recognize expense on supplies

3 Insurance Expense 3,500.00

Prepaid Insurance 3,500.00
To recognize accrued insurance

4 Interest Receivable 15,750.00

Interest Income 15,750.00
To recognize interest from note

5 Interest Expense 39,936.00

Interest Payable 39,936.00
To recognize accrued interest payable

6 Rent Receivables 34,000.00

Rent Income 34,000.00
To recognize rent income

7 Unearned Subscriptions Revenue 173,162.50

Subscriptions Revenue 173,162.50
To recognize accrued revenue

computation:
87,000 x 6/12 43,500.00
95700 x 11/24 43,862.50
85800 x 8/8 85,800.00

8 Depreciation Expense 13,500.00

Accumulated Depreciation-Equipment 13,500.00
To recognize depreciation expense

9 Depreciation Expense 528,354.17

Accumulated Depreciation-Trucks 528,354.17
To recognize depreciation of trucks]

computation
first 2 trucks
salvage value = 1,850,000 x .08 148,000.00
 (1,850,000-148,000) x (8/96) x 2 283,666.67

second 2 trucks
price (1,850,000 x 1.15) 2,127,500.00
salvage value = 2,127,500 x .08 170,200.00
Deprec (2127500-170,200)*(6/96)*2 244,687.50

10 Depreciation Expense 11,250.00

Accumulated Depreciation-Furnitures and Fixtures 11,250.00
To recognize depreciation expense
Adjusting Entry Dec, 2019

1 Utilities Expense 4,950.00

Utilities Payable 4,950.00
To recognize accrued expense

2 Salaries Expense 22,720.00

Salaries Payable 22,720.00
To recognize salaries expense

3 Interest Receivable 5,640.00

Interest Income 5,640.00
To recognize accrued interest income

4 Interest Expense 4,389.00

Interest Payable 4,389.00
To recognize accrued interest expense

5 Rent Expense 7,000.00

Prepaid Rent 7,000.00
To record accrued rent expense

6 Prepaid Insurance 9,000.00

Insurance Expense 9,000.00
To record accrued insurance expense

7 Unearned Service Revenue 192,000.00

Service Revenue 192,000.00
To recognize revenue

8 Doubtful Accounts Expense 17,400.00

Allowance for Doubtful Account 17,400.00
To record allowance for receivable

9 Depreciation Expense 15,000.00

Accumulated Depreciation-Equipment 15,000.00
To record depreciation for equipment

10 Depreciation Expense 5,500.00

Accumulated Depreciation-Furniture and Fixtures 5,500.00
To recognize depreciation for F&F

1. Carrying amount of equipment 110,000.00

125,000-15,000

2. Carrying value of furnitures and fixtures 30,500.00

 36,000 - 5,500

3. Net realizable value 417,600.00

435,000 - 17,400

4. Prepaid rent 14,000.00

21,000 - 7, 000

5. Unearned Service Revenue 48,000.00

240,000 - 192,000