FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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For each of the following transactions (a) through (c) for Catena's Marketing Company, prepare the adjusting entry at the
end of the current year, December 31. The process includes (1) determining if revenue was earned or an expense was
incurred and (2) determining whether cash was received or paid in the past or will be received or paid in the future.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
a. Collected $2,600 rent for the period December 1 of the current year to April 1 of next year, which was credited to
Unearned Rent Revenue on December 1.
b. Purchased a machine for $47,000 cash on January 1. The company estimates annual depreciation at $3,700.
c. Paid $2,600 for a two-year insurance premium on July 1 of the current year; debited Prepaid Insurance for that
amount.
View transaction list
Journal entry worksheet
1
2
3
Prepare the adjusting entry needed at December 31.
Collected $2,600 rent for the period December 1 of the
current year to April 1 of next year, which was credited
to Unearned Rent Revenue on December 1.
Note: Enter debits before credits.
Transaction
a.
General Journal
Debit
Credit
Record entry
View general journal
Clear entry
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Transcribed Image Text:For each of the following transactions (a) through (c) for Catena's Marketing Company, prepare the adjusting entry at the end of the current year, December 31. The process includes (1) determining if revenue was earned or an expense was incurred and (2) determining whether cash was received or paid in the past or will be received or paid in the future. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. a. Collected $2,600 rent for the period December 1 of the current year to April 1 of next year, which was credited to Unearned Rent Revenue on December 1. b. Purchased a machine for $47,000 cash on January 1. The company estimates annual depreciation at $3,700. c. Paid $2,600 for a two-year insurance premium on July 1 of the current year; debited Prepaid Insurance for that amount. View transaction list Journal entry worksheet 1 2 3 Prepare the adjusting entry needed at December 31. Collected $2,600 rent for the period December 1 of the current year to April 1 of next year, which was credited to Unearned Rent Revenue on December 1. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry View general journal Clear entry
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