Below Are Four Transactions That Were Completed During 2011 by Timber

question 48

Essay

Below are four transactions that were completed during 2011 by Timber Lodge.The annual accounting period ends on December 31.Each transaction will require an adjusting entry at December 31,2011.You are to provide the 2011 adjusting entries required for Timber Lodge. $\begin{array}{lll}\text { Prepaid insurance } & 8,000 & \\\text { Cash } & & 8,000\end{array}$ B.On December 31,2011 a tenant renting some storage space from Timber Lodge had not paid the rent of $750 for December 2011.
C.On September 1,2011,Timber Lodge borrowed $25,000 cash and gave a one-year,10 percent,note payable.The interest is payable on the due date,August 31,2012.The September 1,2011 transaction was recorded as follows: Cash $\quad$$\quad$ 25,000
$\quad$ Note payable $\quad$$\quad$ 25,000 D.On October 1,2011,Timber Lodge collected $3,600 from a tenant for two years rent beginning October 1,2011.The $3,600 collection was recorded as follows: Cash $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 3,600
$\quad$ Unearned rent revenues $\quad$$\quad$$\quad$$\quad$ 3,600

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Definitions:

Borrowed Funds

Money obtained through loans or credit arrangements, which is expected to be repaid with interest.

Total Assets

The sum of all current and non-current assets owned by a company, indicating the company's overall value.

Average Collection Periods

The average number of days it takes for a business to receive payments owed by its customers.

Uncollected

Refers to funds or debts that have not been received or recovered by the due date.