Answer: Please see answers in explanation column
Explanation:
1. To record amount of prepaid insurance expired during the quarter
Date Accounting titles Debit Credit
June 30 Insurance expense $500
prepaid insurance $500
Calculation
prepaid insurance expired = insurance premium amount x adjusting entries at the end of each quarter
2000 x 3/12 = $500
2. To record amount of accrued interest for the quarter
Date Accounting titles Debit Credit
June 30 interest expense $550
2016
interest payable $550
Calculation
Interest expense = principal amount x rate x period
$27,500 x 8% x 3/12= $550
3) To record amount of unearned rent for the quarter
Date Accounting titles Debit Credit
June 30 Unearned rent revenue $4,000
2016 Rent revenue $4,000
Calculation
Unearned rent revenue =amount collected for rent x adjusting entries at the end of each quarter= $16,000 x 3/12= $4,000
4) To record amount of depreciation due for the quarter
Date Accounting titles Debit Credit
June 30 Depreciation expense $3000
2016
Accumulated Depreciation $3000
Calculation
Depreciation expense=Depreciation amount x adjusting entries at the end of each quarter= $12,000 x 3/12= $3000
5)To record salary due for month of June but not yet paid
Date Accounting titles Debit Credit
June 30 Salary & wages expense $13,000
2016
Salary & wages payable $13,000
Answer:
Mazzanti Wholesale Food Company
Adjusting Entries on June 30:
Debit Insurance Expense $1,167
Credit Prepaid Insurance $1,167
To record the insurance expense for two quarters and a month.
2.
Debit Interest on Note Expense $1,650
Credit Interest Payable $1,650
To record the interest expense for three quarters.
3.
Debit Cash $8,000
Credit Rent Receivable $8,000
To record rent received for the fiscal year.
4.
Debit Depreciation Expense $12,000
Credit Accumulated Depreciation $12,000
To record depreciation on office building for the year.
5.
Debit Salaries Expense $13,000
Credit Salaries Payable $13,000
To record salaries expense for the month of June, 2016.
Explanation:
a) Fire Insurance Premium Paid = $2,000
Insurance premium for the year = December to June = seven months
= $2,000/12 * 7 = $1,167
b) Interest on Bank Loan = ($27,500 * 8%)/12 * 9/12 = $1,650
c) Rent for 2016 calendar year = $16,000
Rent for 2016 fiscal year = January 1 to June 30 = 6 months
= $8,000 ($16,000/2)
