The following are transactions for the Sky Blue Corporation: a. Collected $5,400 rent for the period...

 

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The following are transactions for the Sky Blue Corporation: a. Collected $5,400 rent for the period October 1 to December 31, which was credited to Deferred Revenue on October 1. b. Paid $3,600 for a two-year insurance premium on October 1 and debited Prepaid Insurance for that amount. c. Used a machine purchased on October 1 for $60,000. The company estimates annual depreciation of $6,000. Required: For each of the above transactions for the Sky Blue Corporation, prepare the adjusting journal entries required on October 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) The following are transactions for the Sky Blue Corporation: a. Collected $5,400 rent for the period October 1 to December 31, which was credited to Deferred Revenue on October 1. b. Paid $3,600 for a two-year insurance premium on October 1 and debited Prepaid Insurance for that amount. c. Used a machine purchased on October 1 for $60,000. The company estimates annual depreciation of $6,000. Required: For each of the above transactions for the Sky Blue Corporation, prepare the adjusting journal entries required on October 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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The adjusting journal entries required on October 31 for each transaction are as follows a Deferred ... View the full answer