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Department
Business
Course
BUSI 1001
Professor
Emily Gray
Semester
Fall

Description
Sept. 30 BUSI1001 3. you pay for first and last months rent on a 2 year lease (Jan 1, x3) $2500/month. It’s  Dec 31, adjusting entry needed. Prepaid rent  5,000 Cash 5,000 Rent expense  2,500 Prepaid rent 2,500 4. On Aug. 1, you sell $25,000 worth of merchandise to a retailer and take a note  receivable. 6 months, 8% interest rate (annual) Dec. 31, year end.  Aug. 1 Note receivable  25,000 Sale  25,000  Dec. 31 25,000 x 8% x 5/12 = 833 Interest receivable  833 Interest revenue  833 Jan. 31  25,000 x 8% x 1/12 = 167 Interest receivable  167 Interest revenue 167  (at year end revenue accounts get whipped clean) Cash  26,000 Note receivable  25,000 Interest receivable  1,000 5. On may 1 , customer pays $6,000 to rent a cottage for the summer (June, July,  August).  May 1 Cash 6,000 Unearned Revenues 6,000 June 30 Unearned revenues  2,000 Rental Revenues  2,000 6,000/3=2,000 3.3 ICP Closing Entries Sales  909,
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