193. DayCo. leases an office to a tenant at the rate of $5,000 per month. The tenant contacted Day and arranged to pay the rent for December 2014 on January 8, 2015. Dayagrees to this arrangement.
a. Prepare the journal entry that Daymust make at December 31, 2014,to record the accrued rental revenue.
b. Prepare the journal entry to record the receipt of the rent on January 8, 2015.
194. Computethe missing amounts:
(1) The Prepaid Insurance account had a $455 debit balance at the beginning of the current year; $650 of insurance premiums were paid during the year; and the year-end balance sheet showed $420 of prepaid insurance; consequently, the income statement for the year must have shown $______________ of insurance expense.
(2) The Office Supplies account began the current year with a $235 debit balance; the income statement for the year showed $475 of office supplies expense; and the year-end balance sheet showed the current asset, office supplies, at $225; consequently, if all supplies were accounted for, $____________ of office supplies must have been purchased during the year.
195. Prepare general journal entries on December 31 to record the following unrelated year-end adjustments.
a. Estimated depreciation on office equipment for the year, $4,000.
b. The Prepaid Insurance account has a $3,680 debit balance before adjustment. An examination of insurance policies shows $950 of insurance expired.
c. The Prepaid Insurance account has a $2,400 debit balance before adjustment. An examination of insurance policies shows $600 of unexpired insurance.
d. The company has three office employees who each earn $100 per day for a five-day workweek that ends on Friday. The employees were paid on Friday, December 26, and have worked full days on Monday, Tuesday, and Wednesday, December 29, 30, and 31.
e. On November 1, the company received sixmonths' rent in advance from a tenant whose rent is $700 per month. The $4,200 was credited to the Unearned Rent account.
f. The company collects rent monthly from its tenants. One tenant whose rent is $750 per month has not paid his rent for December.
196. Show the December 31 adjusting entry to record $750 of earned but unpaid salaries of employees at the end of the current accounting period.
197. Western Company had $500 of store supplies available at the beginning of the current year. During the year Western Company purchased $2,750 worth of store supplies. On December 31 of this year, $375 worth of store supplies remained.
a. Calculate the amount of Western Company's store supplies expense for the current year. (Show your calculations.)
b. Prepare the journal entry to adjust the supplies account.