Auto Detailing,Inc.had the Following Transactions on August 1

question 42

Essay

Auto Detailing,Inc.had the following transactions on August 1:
a.The company sold $2,100 of inventory costing $1,400.The customer will not be billed until September.As of August 31,no entries have been made with respect to the inventory that has been sold or the sale.
b.The company received a $2,000 payment from a customer for services to be performed during August and September.On August 1,the entire $2,000 was placed in the Unearned Revenue account.As of August 31,40% of the work had been completed.
c.The company paid $7,200 for 4 months' rent in advance.The entire amount was placed into Prepaid Rent.
d.The company sold equipment costing $2,400 for $5,400 to a customer in return for a 3-month note.The sale was properly recorded on August 1.Auto Detailing,Inc.is charging 12% interest on the note.The customer will pay the note and all interest after 3 months.
Prepare the appropriate journal entries for Auto Detailing,Inc.as of August 31,for each of the above transactions.