For each of the following independent situations, prepare journal entries to record the initial transaction on September 30 and the adjustment required on October 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Hockey Helpers paid $4,200 cash on September 30 to rent an arena for the months of October and November. Super Stage Shows received $16,200 on September 30 for season tickets that admit patrons to a theatre event that will be held twice (on October 31 and November 30). Risky Ventures paid $3,150 on September 30 for insurance coverage for the months of October, November, and December.

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TomShelby TomShelby · Answer 1 · 2019-10-03T07:21:10+02:00

Answer:

rent expense 2,100 debit

rent prepaid 2,100 credit

cash 4,200 credit

rent expense 2,100 debit

rent prepaid 2,100 credit

cash 16,200 debit

unearned revenue 16,200 credit

unearned revneue 8,100 debit

service revenue 8,100 credit

prepaid insurance 3,150 debit

cash 3,150 credit

insurance expense 1,050 debit

prepaid insurance 1,050 credit

Explanation:

A) one month is rent expense while the other prepaid.

4,200 / 2 months = 2,100

at october 31th we accrued the month rent expense and decrease the payable

B) this will be unearned revenu

at month end we recognize half as there are two events and one has already occur

16,200 / 2 = 8,100

C) similar to A but this time the contract is for three mont hand all are prepaid when paying.

3,1050 / 3 = 1,050

at the end of the month, we adjust and recognze insurance expense.