Account Debit Credit

7 Interest Receivable 10,000.00

Interest Income 10,000.00
to accrue interest income earned but not yet paid
8 Interest Expense 4,000.00
Interest Payable 4,000.00
to accrue interest expense but not yet paid
9 Rent Expense 240,000.00
Rent Payable 240,000.00
to recognize rent expense
10 Utility Expense 6,000.00
Utility Payable 6,000.00
to recognize utilities expense
11 Depreciation Expense - Computer Equipment 40,000.00
Accum. Depreciation - Computer Equipment 40,000.00
to recognize depreciated equipment
12 Allowance for Bad Debts 30,000.00
Accounts Receivable 30,000.00
to recognize estimated doubtful accounts
13 Cash 360,000.00
Unearned Rent 360,000.00
to record the receipt of 1-year rent advance
14 Cash 360,000.00
Rent Income 360,000.00
to record the receipt of 1-year rent advance
15 Unearned Rent 210,000.00
Rent Income 210,000.00
to recognize earned portion of 1-year rent advance
16 Rent Income 150,000.00
Unearned Rent 150,000.00
to recognize unearned portion of 1-year rent advance
17 Prepaid Insurance 360,000.00
Cash 360,000.00
to record prepayment of insurance
18 Insurance Expense 360,000.00
Cash 360,000.00
to record prepayment of insurance
19 Insurance Expense 60,000.00
Prepaid Insurance 60,000.00
to recognize the expired portion of insurance
20 Prepaid Insurance 300,000.00
Insurance Expense 300,000.00
to recognize the unexpired portion of insurance