Problem 2–3 1. Depreciation expense ................................................ Accumulated depreciation ..................................... 2. Wage expense ............................................................ Wages payable....................................................... 3. Interest expense ($50,000 x 12% x 3/12) ........................ Interest payable...................................................... 4. Interest receivable ($20,000 x 8% x 10/12) ..................... Interest revenue ..................................................... 5. Prepaid insurance ($6,000 x 15/24) ............................... Insurance expense.................................................. 6. Supplies expense ($1,500 – 800) .................................. Supplies ................................................................. 7. Sales revenue ............................................................. Unearned revenue .................................................. 8. Rent expense.............................................................. Prepaid rent ........................................................... 10,000 1,500 1,500 1,333 3,750 700 2,000 1,000 10,000 1,500 1,500 1,333 3,750 700 2,000 1,000 2– Solutions Manual, Vol.1, Chapter 2 51