Below Are Four Transactions That Were Completed During 2019 by Timber

question 24

Essay

Below are four transactions that were completed during 2019 by Timber Lodge.The annual accounting period ends on December 31.Each transaction will require an adjusting entry at December 31,2019.
Prepare the 2019 adjusting entries required for Timber Lodge.
A.On July 1,2019,Timber Lodge paid a two-year insurance premium for a policy on its facilities.This transaction was recorded as follows:
B.On December 31,2019,a tenant renting some storage space from Timber Lodge had not paid the rent of $750 for December.
C.On September 1,2019,Timber Lodge borrowed $25,000 cash and gave a one-year,6 percent,note payable.The interest is payable on the note's due date of August 31,2020.The September 1,2019 transaction was recorded as follows:
D.On October 1,2019,Timber Lodge collected $10,000 from a tenant for two years rent beginning October 1,2019.The $10,000 collection was recorded as follows:

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Definitions:

Full Refund

The total amount of money returned to a customer for a product or service that did not meet the expected standards or satisfaction.

Reduced Rate

A discounted price offered from the regular cost of goods or services.

Motivate Action

The process of inspiring or encouraging individuals or groups to take desired actions or engage in specific behaviors.

Deadline

The most recent deadline or schedule by which a task needs to be finished.