Recording Transactions: Accruals and Prepayments

Section A A business pays rent quarterly in advance on 1 January, 1 April, 1 July, and 1 October. The annual rent was $24,000 until 30 June 20X4, when it increased to $30,000 per year. The business year-end is 31 August 20X4. What is the prepayment for rent to be included in the statement of financial position at 31 August 20X4? (Enter the number only)

Section B - Case 2: Single Entity Accounts **Scenario: AquaHarvest Marine Farms** AquaHarvest prepares its financial statements for the year ended 30 September 20X6. The draft profit before adjustments is $120,000. Issue 1: A payment for marine insurance of $6,000 for the year ending 31 December 20X6 was recorded entirely as an expense in the P&L. Issue 2: Depreciation on harvesting equipment (Cost $80,000, Acc Dep $30,000) needs to be charged at 20% reducing balance. Issue 3: A customer went bankrupt owing $2,500. This needs to be written off. Issue 4: A suspense account has a $4,500 Credit balance because a cash receipt of $4,500 from a credit customer was only recorded in the cash book. Regarding Issue 1, what is the prepayment amount for marine insurance at 30 September 20X6? (Enter the number only)

Section B - Case 2: Single Entity Accounts **Scenario: AquaHarvest Marine Farms** AquaHarvest prepares its financial statements for the year ended 30 September 20X6. The draft profit before adjustments is $120,000. Issue 1: A payment for marine insurance of $6,000 for the year ending 31 December 20X6 was recorded entirely as an expense in the P&L. Issue 2: Depreciation on harvesting equipment (Cost $80,000, Acc Dep $30,000) needs to be charged at 20% reducing balance. Issue 3: A customer went bankrupt owing $2,500. This needs to be written off. Issue 4: A suspense account has a $4,500 Credit balance because a cash receipt of $4,500 from a credit customer was only recorded in the cash book. What is the correct journal entry to record the insurance prepayment?