Classify each situation, then journalize the six entries yourself. Every miss tells you why.
1.A year of office rent was paid in October and three months have passed.
2.Employees worked Dec 29–31. Payday is January 9.
3.A client paid $3,000 for 60 days of consulting to be delivered starting tomorrow.
4.Twenty days of a 30-day contract are done; the bill goes out when the job ends.
5.Equipment bought on December 3 has now been used for a month.
6.Interest on a bank loan has accumulated but is not due until March.
7.A magazine collected subscriptions in advance for next year’s issues.
8.Interest has been earned on a note receivable but will be collected at maturity.
Paid $2,400 on Dec 26 for a 24-month policy whose coverage began Dec 1. $2,400 ÷ 24 = $100 a month.