On June 1, 2019, Raquel Ramirez established her own advertising firm. Selected transactions for the first few days of June follow.
1. Record the transactions on page 1 of the general journal. Omit descriptions. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability.
2. Record the adjusting journal entries that must be made on June 30, 2019, on page 2 of the general journal. Omit descriptions.
DATE TRANSACTIONS
2019 June 1 Signed a lease for an office and issued Check 101 for $15,000 to pay the rent in advance for one year.
1Borrowed money from National Trust Bank by issuing a three-month, 10 percent note for $18,000; received $17,550 because the bank deducted interest in advance.
1 Signed an agreement with Michelle's Party Supplies to provide advertising consulting for one year at $6,500 per month; received the entire fee of $78,000 in advance.
1 Purchased office equipment for $17,200 from The Equipment Depot; issued a three month,
6 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,000 salvage value and will be depreciated using the straight-line method.
1 Purchased a one-year insurance policy and issued Check 102 for $1,680 to pay the entire premium.
3 Purchased office furniture for $17,400 from Office Gallery; issued Check 103 for
$10,000 and agreed to pay the balance in 60 days. The furniture is estimated to have a useful life of five years and a $1,200 salvage value and will be depreciated using the straight-line method.
5 Purchased office supplies for $1,910 with Check 104; assume $850 of supplies are on hand June 30, 2019.
Analyze
At the end of calendar year 2019, how much of the rent paid on June 1 will have been charged to expense?