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:

Household Income

The total income received by all members of a household, including earnings from work, investments, and other sources before taxes and other deductions.

Perfect Equality

A theoretical state where all individuals have exactly the same income or wealth, eliminating disparities.

Income Distribution

The way in which total income is spread amongst the population or different groups within a society.

Lorenz Curve

A diagrammatic representation that exhibits how wealth or income is distributed among people in a society, underscoring the existing inequalities.