Journal Entries

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26. Data relating to the balances of various accounts affected by
     adjusting or closing entries appear below. (The entries which caused
     the changes in the balances are not given.)  You are asked to supply
     the missing journal entries which would logically account for the
     changes in the account balances.
     1. Interest receivable at 1/1/99 was $900. During 1999 cash received
        from debtors for interest on outstanding notes receivable
        amounted to $5,200.  The 1999 income statement showed interest
        revenue in the amount of $4,900.  You are to provide the missing
        adjusting entry that must have been made, assuming reversing
        entries are not made.


     2. Unearned rent at 1/1/99 was $5,300 and at 12/31/99 was $8,000.

        The records indicate cash receipts from rental sources during

        1999 amounted to $42,500, all of which was credited to the

        Unearned Rent Account.  You are to prepare the missing adjusting

        entry.

    

     3. Accumulated depreciation——equipment at 1/1/99 was $210,000.  At

        12/31/99 the balance of the account was $260,000.  During 1999,

        one piece of equipment was sold.  The equipment had an original

        cost of $40,000 and was 3/4 depreciated when sold.  You are to

        prepare the missing adjusting entry.

    

     4. Allowance for doubtful accounts on 1/1/99 was $50,000.  The

        balance in the allowance account on 12/31/99 after making the

        annual adjusting entry was $58,000 and during 1999 bad debts

        written off amounted to $30,000.  You are to provide the missing

        adjusting entry.

    

     5. Prepaid rent at 1/1/99 was $9,000.  During 1999 rent payments of

        $115,000 were made and charged to "rent expense." The 1999 income

        statement shows as a general expense the item "rent expense" in

        the amount of $120,000.  You are to prepare the missing adjusting

        entry that must have been made, assuming reversing entries are

        not made.

    

     6. Retained earnings at 1/1/99 was $140,000 and at 12/31/99 it was

        $210,000.  During 1999, cash dividends of $50,000 were paid and a

        stock dividend of $60,000 was issued.  Both dividends were

        properly charged to retained earnings.  You are to provide the

        missing closing entry.