a Details of Prepaid Rent are shown in the account Prepaid R

a.??

Details of Prepaid Rent are shown in the? account:

Prepaid Rent

Jan

1

Bal.

5,500

Mar

31

11,000

Sept

30

11,000

LumberLumber

b.

LumberLumber

$ 5 comma 000$5,000

TuesdayTuesday.

c.

LumberLumber

$ 2 comma 800$2,800

d.

?$5 comma 9005,900.

?$30 comma 00030,000?,

December 31December 31

?$6 comma 1006,100.

e.

LumberLumber

LumberLumber

?$56 comma 00056,000

LumberLumber

Robin ZweigRobin Zweig?,

seventy percentseventy percent

f.

?$32 comma 00032,000?;

?$51 comma 00051,000.

?(For your? convenience, the descriptions of the transactions shown in this? pop-up have been fully integrated into the directions for each journal entry so you may now close the? pop-up while solving this? problem.)

a.??	Details of Prepaid Rent are shown in the? account:                                                 Prepaid Rent Jan 1 Bal. 5,500 Mar 31 11,000 Sept 30 11,000 LumberLumber Contractors pays office rent semiannually on March 31 and September 30. At December? 31, part of the last payment is still available to cover January to March of the next year. No rent expense was recorded during the year.
b.	LumberLumber Contractors pays its employees each Friday. The amount of the weekly payroll is $ 5 comma 000$5,000 for a? five-day workweek, and the daily salary amounts are equal. The current accounting period ends on TuesdayTuesday.
c.	LumberLumber Contractors has lent money to help employees find? housing, receiving notes receivable in return. During the current year the entity has earned interest revenue of $ 2 comma 800$2,800 from? employees\' loans, which it will receive next year.
d.	The beginning balance of Supplies was ?$5 comma 9005,900. During the? year, the company purchased supplies costing ?$30 comma 00030,000?, and at December 31December 31 the inventory of supplies remaining on hand is ?$6 comma 1006,100.
e.	LumberLumber Contractors is installing cable in a large? building, and the owner of the building paid LumberLumber Contractors ?$56 comma 00056,000 as the annual service fee. LumberLumber Contractors recorded this amount as Unearned Service Revenue. Robin ZweigRobin Zweig?, the general? manager, estimates that the company has earned seventy percentseventy percent of the total fee during the current year.
f.	Amortization for the current year includes? Equipment, ?$32 comma 00032,000?; and? Trucks, ?$51 comma 00051,000. Make a compound entry. ?Hint: This means include all the accounts in one journal entry.

Solution

Journal entries

date

explanationa

debit

credit

a-

rent expense

22000

prepaid rent

22000

b-

wages expenses

2000

wages payable

2000

c

interest receivables

2800

interest revenue

2800

d

supplies expense

29800

supplies

29800

e-

unearned service revenue

39200

service revenue

39200

f-

depreciation expense

83000

accumulated depreciation-equipment

32000

accumulated depreciation-truck

51000

Journal entries
date	explanationa	debit	credit
a-	rent expense	22000
	prepaid rent		22000
b-	wages expenses	2000
	wages payable		2000
c	interest receivables	2800
	interest revenue		2800
d	supplies expense	29800
	supplies		29800
e-	unearned service revenue	39200
	service revenue		39200
f-	depreciation expense	83000
	accumulated depreciation-equipment		32000
	accumulated depreciation-truck		51000