Assume that on February 1, Brown and Smith paid $723,600 in advance for 2 years’ insurance coverage. Prepare Brown and Smith February 1 journal entry and the annual adjusting entry on June 30
Correct?
Debit- Cash 723600
Credit- Unearned Rev. 723600
Debit- Rent Rev. 150750
Credit- Unearned Rev. 150750
LaBouche Corporation owns a warehouse. On November 1, it rented storage space to a lessee (tenant) for 3 months for a total cash payment of $2,838 received in advance. Prepare LaBouche’s November 1 journal entry and the December 31 annual adjusting entry. (Round answers to zero decimal places, e.g. 3,510.)
Correct?
Debit- Cash 2838
Credit- Unearned Rev. 2838
Debit- Rent Rev. 1892
Credit- Unearned Rev. 1892
When a corporation pays a note payable and interest,
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the account Notes Payable will be increased. |
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the account Cash will be debited. |
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the account Interest Expense will be decreased. |
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the accounts Notes Payable and Interest Expense will be debited. |
Correct?