Question #4 The following situations are unrelated to one another. 1. On Novembe
ID: 2492945 • Letter: Q
Question
Question #4 The following situations are unrelated to one another.
1. On November 1, 2015 Lang Corporation, a magazine publisher, received $15,000 Cash from customers for 1-year subscriptions. Prepare a Journal entry to record the subscriptions on November 1….. and the necessary Adjusting Entry on December 31,2015 its fiscal year end.
2. On June 30, 2015 Wong Inc. paid $2,000 for a 1-year insurance policy, effective July 1, 2011. Prepare a Journal entry to record the payment of insurance premium on June 30; and the necessary Adjusting Entry on December 31, its fiscal year end.
3. On January 1, Sawyer Company purchased equipment for $30,000. The equipment is expected to have 10 years useful life. Prepare a Journal Entry to record the acquisition on January 1; and the necessary Adjusting Entry on December 31, its fiscal year end.
4. McNair Inc. borrowed $100,000 from the bank by signing a Note Payable on October 31, 2015. The Note carries a 6% annual interest, paid annually on November 1, and will mature in three years. Prepare a Journal Entry to record the Note signed on October 31; and the necessary Adjusting Entry on December 31, 2015 its fiscal year end.
5. Sewell Co. received its January utility bill of $360 on January 31, 2016. The bill was due and paid February 20, 2016. Prepare a Journal Entry to record the receipt of the utility bill on January 31 and the payment on February 20.
Explanation / Answer
Answer:1
1 Nov
Cash A/C Dr. $15000
To unearned revenue A/C $15000
31 Dec
unearned revenue A/C Dr. $2500
To Subscription revenue A/C $2500