3.auto detailing, inc. had the following transactions on august 1:
a. the company sold $2,100 of inventory costing $1,400. the custome
2,100 of inventory costing $1,400. the customer will not be billed until september. as
of august 31, no entries have been made with respect to the inventory that has
been made with respect to the inventory that has been sold or the sale.
b. the company received a $2,000 payment from a customer for services to be performed during august and
september. on august 1, the entire $2,000 was placed in the unearned revenue account. as of august 31,
40% of the work had been completed.
c. the company paid $7,200 for 4 months' rent in advance. the entire amount was placed into prepaid rent.
d. the company sold equipment costing $2,400 for $5,400 to a customer in return for a 3-month note. the sale
was properly recorded on august 1. auto detailing, inc. is charging 12% interest on the note. the customer
will pay the note and all interest after 3 months.
prepare the appropriate journal entries for auto detailing, inc. as of august 31, for each of the above
transactions.