Hi i need help with the following transactions. Right now we are learning about the accrual basis of accounting.
1.Rent Payments included $750 per month rental fee and a $900 deposit that is refundable at the end of the 2 yr lease.
2.The company manager used her personal automobile for business purposes: 10,000 km at 35 cents per km. She was not paid for the use of her car but would like to be.
Additional information:
Prepaid Rent at December 31, 2006 was 9900.
I'm not sure how to do the first one.
For the second one is it just:
Miscellaneous Expense debit 3500 and A/P credit 3500.