Problem 1

a. Insurance Expense 8,000.00

Prepaid Insurance 8,000.00

b. Interest Expense 1,750.00

Interest Payable 1,750.00

c. Depreciation Expense - Delivery Equipment 50,000.00

Accumulated Depreciation - Delivery Equipment 50,000.00

d. Cash 18,000.00
Unearned Service Revenue 18,000.00

Unearned Service Revenue 13,500.00

Service Revenue 13,500.00

e. Office Supplies Expense 6,400.00

Accounts Payable 6,400.00

Prepaid Office Supplies 750.00

Office Supplies Expense 750.00

f. Interest Receivable 2,400.00

Interest Income 2,400.00

g. Prepaid Rent 78,000.00

Cash 78,000.00

Rent Expense 26,000.00

Prepaid Rent 26,000.00
Problem 2

1 Interest Expense 120,000.00

Interest Payable 120,000.00

2 Salaries Expense 115,200.00

Salaries Payable 115,200.00
(192000*3/5)

3 Office Supplies Expense 41,950.00

Prepaid Office Supplies 41,950.00

4.1 Insurance Expense 15,300.00

Prepaid Insurance 15,300.00

4.2 Insurance Expense 14,500.00

Prepaid Insurance 14,500.00

4.3 Insurance Expense 1,870.00

Prepaid Insurance 1,870.00

5.1 Depreciation Expense - Building 54,750.00

Accumulated Depreciation - Building 54,750.00

5.2 Depreciation Expense - Equipment 163,500.00

Accumulated Depreciation - Building 163,500.00

6 NO ENTRY

7 Accounts Receivable 35,000.00

Service Income 35,000.00
115200