Journalizing Transactions 2

• Supplies on hand at the end of the month totaled $18,600

  Supplies Expense ($24,000 – $18,600)............. 5,400 Supplies ...................................................... 5,400

  
• The investment in the notes receivable earns interest at a rate of 6% per year.

  Interest Receivable ($20,000 x .06 x 1/12)........ 100 Interest Revenue ........................................ 100

  
• The balance in Prepaid Rent represents 4 months of rent costs

  Rent Expense ($3,600 divided 4)................................. 900 Prepaid Rent ............................................... 900

  
• Employees were owed $3,100 related to unpaid salaries and wages.

  Salaries and Wages Expense ........................... 3,100 Salaries and Wages Payable..................... 3,100

  
• Depreciation on buildings is $6,000 per year.

  Depreciation Expense ($6,000 divided 12) ................. 500 Accumulated Depreciation Buildings.... 500
• During the month, the company satisfied obligations worth $4,700 related to the Unearned Services Revenue

  Unearned Service Revenue .............................. 4700 Service Revenue ....................................... 4700
• Unpaid maintenance and repairs costs were $2,300. 


  Maintenance and Repairs Expense.................. 2300 Accounts Payable ...................................... 2300