Accounting Exercises, Week Three: MyTie Journal Entries Create the following journal entries for MyTie company:

Jan. 1 Record the payment for $3,600 representing 12 months of prepaid insurance. Jan. 2 Paid the landlord 6 months of rent in advance. Monthly rent equals $1,500 per month. Jan 31. Record the use of one month of insurance Jan. 31 Record the use of one month of rent. Feb 1. Purchased a $36,000 truck for cash. The truck is expected to last 36 months. Feb 28 Record one month of Deprecation on the $36,000 truck. Feb 28. Record the use of one month of insurance Feb 28 Record the use of one month of rent. Feb 28 Record Februarys electric bill $500 to be paid next month. Feb 28 Record $2,000 of Revenue earned for February however not received. March 1 Received 6 months of revenue in advance total $600. March 31 Company earns 1 month of revenue received from March 1st.

Date Jan. 1

Account Prepaid Insurance (300 x 12) Cash Paid Insurance In Advance Jan. 2 Prepaid Rent (1,500 x 6) Cash Paid Rent in Advance Jan. 31 Insurance Expense (3,600 x 1/12) Prepaid Insurance To Record Insurance Expense Jan. 31 Rent Expense (9,000 x 1/6) Prepaid Rent To Record Rent Expense Feb. 1 Truck Cash Purchased Truck Feb. 28 Depreciation Expense Truck Accumulated depreciation Truck To Record Depreciation on Truck Feb. 28 Insurance Expense (3,600 x 1/12) Prepaid Insurance To Record Insurance Expense Feb. 28 Rent Expense (9,000 x 1/6) Prepaid Rent To Record Rent Expense Feb. 28 Electric Expense Accounts Payable Electric Expense February Feb. 28 Accounts Receivable Service Revenue To Accrue Service Revenue Mar. 1 Cash Unearned Service Revenue Collected Revenue in Advance Mar. 31 Unearned Service Revenue (600 x 1/6) Service Revenue To Record Service Revenue That Was Collected In Advance

Debit 3,600

Credit 3,600

9,000 9,000 300 300 1,500 1,500 36,000 36,000 1,000 1,000 300 300 1,500 1,500 500 500 2,000 2,000 600 600 100 100