a. On October 1, 2012, Hurricane lends $8,000 to another company. The other company signs a note indicating principal and…

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August 2, 2020
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August 2, 2020

a. On October 1, 2012, Hurricane lends $8,000 to another company. The other company signs a note indicating principal and…

a. On October 1, 2012, Hurricane lends $8,000 to another company. The other company signs a note indicating principal and 8% interest will be paid to Hurricane on September 30, 2013. b. On November 1, 2012, Hurricane pays its landlord $3,000 representing rent for the months of November through January. The payment is debited to Prepaid Rent for the entire amount. c. On August 1, 2012, Hurricane collects $15,600 in advance from another company that is renting a portion of Hurricane’s factory. The $15,600 represents one year’s rent and the entire amount is credited to Unearned Revenue. d. Depreciation on machinery is $4,900 for the year. e. Salaries for the year earned by employees but not paid to them or recorded are $3,600. f. Hurricane begins the year with $980 in supplies. During the year, the company purchases $3,900 in supplies and debits that amount to Supplies. At year-end, supplies costing $2,500 remain on hand. for these questions it wants to know what account to use, and what amount to debit and credit into each account.

 

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