question a review of the ledger of blossom company at december 31 2017 produces thes 4287931
Question
A review of the ledger of Blossom Company at December 31, 2017, produces these data pertaining to the preparation of annual adjusting entries.
Prepare the adjusting entries at December 31, 2017. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
|
1. |
|
Prepaid Insurance $15,243. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on July 1, 2016, for $9,630. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2017, for $7,218. This policy has a term of 18 months. |
|
2. |
|
Unearned Rent Revenue $304,000. The company began subleasing office space in its new building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease. |