Investment in Note Receivable Supplies Prepaid Rent Building

Investment in Note Receivable

Supplies

Prepaid Rent

Buildings

Accumulated Depreciation—Buildings

Unearned Service Revenue

		Debit		Credit
Investment in Note Receivable		$24,000
Supplies		23,500
Prepaid Rent		3,200
Buildings		280,000
Accumulated Depreciation—Buildings				$140,000
Unearned Service Revenue				11,900

Solution

1) Interest receivble (24000*12%/12) 240 Interest income 240 2) Supplies expense (23500-15200) 8300 Supplies 8300 3) Rent expense (3200/4) 800 Prepaid rent 800 4) Salaries and wages expense 2700 Salaries and wages payable 2700 5) Depreciation expense-Buildings (6720/12) 560 Accumualated depreciation-Buildings 560 6) Unearned service revenue 4800 Service revenue 4800 7) Repairs and maintenane expense 2300 Accounts payable 2300