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


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.)


Debit- Cash 2838
Credit- Unearned Rev. 2838

Debit- Rent Rev. 1892
Credit- Unearned Rev. 1892

When a corporation pays a note payable and interest,

the account Notes Payable will be increased.

the account Cash will be debited.

the account Interest Expense will be decreased.

the accounts Notes Payable and Interest Expense will be debited.