answer the following questions about prepaid expenses:\na. on march 1, meadow tree service prepaid $7,200…

answer the following questions about prepaid expenses:\na. on march 1, meadow tree service prepaid $7,200 for six months rent. give the adjusting entry to record rent expense at march 31. include the date of the entry and an explanation. then post all amounts to the two accounts involved, and show their balances at march 31. meadow adjusts the accounts only at march 31, the end of its fiscal year.\nb. on march 1, meadow tree service paid $1,050 for supplies. at march 31, meadow has $400 of supplies on hand. make the required journal entry at march 31. then post all amounts to the accounts and show their balances at march 31. assume no beginning balance in supplies.\na. on march 1, meadow tree service prepaid $7,200 for six months rent. give the adjusting entry to record rent expense at march 31. include the date of the entry and an explanation. then post all amounts to the two accounts involved, and show their balances at march 31. meadow adjusts the accounts only at march 31, the end of its fiscal year.\nprepare the adjusting journal entry to record the rent expense at march 31. (record debits first, then credits. select the explanation on the last line of the journal entry table.)\ndate accounts and explanations debit credit\nmarch 31

answer the following questions about prepaid expenses:\na. on march 1, meadow tree service prepaid $7,200 for six months rent. give the adjusting entry to record rent expense at march 31. include the date of the entry and an explanation. then post all amounts to the two accounts involved, and show their balances at march 31. meadow adjusts the accounts only at march 31, the end of its fiscal year.\nb. on march 1, meadow tree service paid $1,050 for supplies. at march 31, meadow has $400 of supplies on hand. make the required journal entry at march 31. then post all amounts to the accounts and show their balances at march 31. assume no beginning balance in supplies.\na. on march 1, meadow tree service prepaid $7,200 for six months rent. give the adjusting entry to record rent expense at march 31. include the date of the entry and an explanation. then post all amounts to the two accounts involved, and show their balances at march 31. meadow adjusts the accounts only at march 31, the end of its fiscal year.\nprepare the adjusting journal entry to record the rent expense at march 31. (record debits first, then credits. select the explanation on the last line of the journal entry table.)\ndate accounts and explanations debit credit\nmarch 31

Answer

Explanation:

Step1: Calculate monthly rent expense

The company prepaid $7,200 for 6 - months' rent. The monthly rent expense is calculated as $\frac{7200}{6}=1200$.

Step2: Determine adjusting entry for rent

On March 31, we need to record one - month's rent expense. Debit the Rent Expense account to recognize the expense and credit the Prepaid Rent account to reduce the prepaid amount.

Date Accounts and Explanations Debit Credit
March 31 Rent Expense 1200
Prepaid Rent 1200
(To record rent expense for March)

For the prepaid rent account:

  • Beginning balance on March 1: $7200$
  • Credit amount on March 31: $1200$
  • Ending balance on March 31: $7200 - 1200=6000$

For the rent expense account:

  • Beginning balance: $0$
  • Debit amount on March 31: $1200$
  • Ending balance on March 31: $1200$

Step3: Calculate supplies used

The company paid $1050$ for supplies on March 1 and had $400$ of supplies on hand at March 31. The supplies used is $1050 - 400 = 650$.

Step4: Determine adjusting entry for supplies

Debit the Supplies Expense account to recognize the expense and credit the Supplies account to reduce the asset amount.

Date Accounts and Explanations Debit Credit
March 31 Supplies Expense 650
Supplies 650
(To record supplies used in March)

For the supplies account:

  • Beginning balance on March 1: $0$
  • Debit amount on March 1: $1050$
  • Credit amount on March 31: $650$
  • Ending balance on March 31: $400$

For the supplies expense account:

  • Beginning balance: $0$
  • Debit amount on March 31: $650$
  • Ending balance on March 31: $650$

Answer:

a.

Date Accounts and Explanations Debit Credit
March 31 Rent Expense 1200
Prepaid Rent 1200
(To record rent expense for March)
Prepaid Rent ending balance: $6000$, Rent Expense ending balance: $1200$

b.

Date Accounts and Explanations Debit Credit
March 31 Supplies Expense 650
Supplies 650
(To record supplies used in March)
Supplies ending balance: $400$, Supplies Expense ending balance: $650$