Answer:
Journal Entries:
a. Debit Depreciation Expense $4,500
Credit Accumulated Depreciation $4,500
To record depreciation expense for the year.
b. Debit Insurance Expense $600
Credit Prepaid Insurance $600
To record expired insurance expense.
c. Debit Rent Expense $600
Credit Prepaid Rent $600
To record used rent expense.
d. Debit Wages Expense $900
Credit Wages Payable $900
To accrue wages unpaid.
e. Debit Unearned Rent $1,400
Credit Rent Revenue $1,400
To record earned rent revenue for November and December.
f. Debit Rent Receivable $1,000
Credit Rent Revenue $1,000
To record rent revenue due.
Explanation:
1) Data and Analysis:
a. Depreciation Expense $4,500 Accumulated Depreciation $4,500
b. Insurance Expense $600 Prepaid Insurance $600 ($3,680 - $3,080)
c. Rent Expense $600 Prepaid Rent $600 ($2,400/4)
d. Wages Expense $900 Wages Payable $900 ($100*3*3)
e. Unearned Rent $1,400 Rent Revenue $1,400 ($700 * 2 for Nov. and Dec.)
f. Rent Receivable $1,000 Rent Revenue $1,000
