Answer:
The Mazzanti Wholesale Food Company
Adjusting Journal Entries:
a.
Debit Insurance Expense $3,969
Credit Prepaid Insurance $3,969
To accrue insurance expense for seven months.
b.
Debit Interest Expense $7,167
Credit Interest Payable $7,167
To accrue interest expense for 10 months.
c.
Debit Deferred Rent Revenue $12,800
Credit Rent Revenue $12,800
To record rent revenue earned.
d.
Debit Depreciation expense-Office Building $18,600
Credit Accumulated Depreciation-Office Building $18,600
To record depreciation expense for the year.
e.
Debit Salaries and Wages $19,000
Credit Salaries and Wages Payable $19,000
To accrue salaries for the month of June 2021.
Explanation:
Mazzanti Wholesale Food Company uses journal entries to identify the accounts involved in each business transaction. Journal entries identify which account is to be debited and the account to be credited, following basic accounting principle and based on the accounting equation of Assets = Liabilities + Equity.
