## Answers

Date | Account Title and Description | Debit | Credit | ||

a. | Accounts Receivable A/c | $ 15,000 | |||

To Service Revenue A/c | $ 15,000 | ||||

( Being Service Revenue yet to be billed raised now) | |||||

b. | Interest Expense A/c | $ 9,000 | |||

To Interest Payable A/c | $ 9,000 | ||||

( Being Interest Expense on Notes payable recored for 9 months of this FY ) | |||||

c. | Insurance Expense A/c | $ 7,500 | |||

To Prepaid Insurance | $ 7,500 | ||||

( Being Insurance Expense recored for 3 months of this FY ) | |||||

d. | Rent Expense A/c | $ 80,000 | |||

To Prepaid Rent A/c | $ 80,000 | ||||

( Being Rent Expense recored for 2 months of this FY ) | |||||

e. | Salaries & Wages A/c | $ 22,000 | |||

To Salaries & Wages Payable A/c | $ 22,000 | ||||

( Being Unpaid paid salaries recorded for this FY ) | |||||

f. | Cost of Goods Sold A/c | $ 115,000 | |||

To Inventory A/c | $ 115,000 | ||||

(Being inventory value adjusted ) | |||||

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