Post a New Question

Accounting

posted by .

Hi i need help with the following transactions. Right now we are learning about the accrual basis of accounting.

1.Rent Payments included $750 per month rental fee and a $900 deposit that is refundable at the end of the 2 yr lease.

2.The company manager used her personal automobile for business purposes: 10,000 km at 35 cents per km. She was not paid for the use of her car but would like to be.

Additional information:
Prepaid Rent at December 31, 2006 was 9900.

I'm not sure how to do the first one.

For the second one is it just:

Miscellaneous Expense debit 3500 and A/P credit 3500.

  • Accounting -

    At Dec. 31st Prepaid Rent (an asset wccount)was 9000.
    On that same date Deposits (an asset account) was 900

    The second one, from the viewpoint of the company manager, she would have an Account Receivable (from the company) of $3500.

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question