Accounting help?

Question

Trying to understand these previously recorded transactions can anyone break them down for me. Thanks
Debit 3,000 to Amorization Expense Credit 3,000 to Accumulated Amortization
Debit 2,00 to unearned professional fees Credit 2,00 to Profressional fees earned
Debit Rent Expense 1,000, Credit 1,000 to Prepaid Rent
Debit Interest Expense 4,000, Credit Interest Payable
Debit Prepaid rent 3,500, Credit Cash 3,500
Debit Salaries expense 5,000, Credit Salaries Payable 5,000
Debit Insurance expense 6,000, Credit Prepaid Insurance 6,000

Answer 1

Debit 3,000 to Amortization Expense
Credit 3,000 to Accumulated Amortization

You are amortizing an asset in this entry. It's probably been determined previously that the asset has a definite life and the amt of amortization per period should be 3k, so each period, you'd make this entry. The Accd Amortization a/c balance, when set off against the asset at cost a/c, would go to reduce the carrying amt of the asset.

Debit 2,00 to unearned professional fees (B/S item)
Credit 2,00 to Professional fees earned (P/L item)

You've previously rec'd cash for professional services which you hadn't provided. At that time, your entry would have been
Dr Cash 2,00
Cr Unearned prof fees 2,00
You're making this current entry now cos you've provided the svcs and have earned your money, so you're closing off the unearned prof fee a/c and taking the earned part to the income statement where it is an income item.

Debit Rent Expense 1,000, (P/L item)
Credit 1,000 to Prepaid Rent (B/S item)

Here, you're reversing a prepayment a/c to expenses. If, say, in Jan you paid rent meant for Feb, your entry then would have been
Dr Prepaid rent 1k
Cr Cash 1k
Now that it's Feb, you're making the entry to take the prepaid rent to rent expense a/c.

Debit Interest Expense 4,000 (P/L item)
Credit Interest Payable 4,000 (B/S item)

You probably have borrowed money and owe interest on the loan and the int. of 4k has not been paid. This entry is to recognise that you've incurred interest of 4k and that this interest has yet to be paid. Interest payable is a current liability a/c

Debit Prepaid rent 3,500,
Credit Cash 3,500

This is as I've explained above for the 1k. You've paid rent meant for a future period, usually the next month. When next mth comes, you have to reverse this to expenses.

Debit Salaries expense 5,000,
Credit Salaries Payable 5,000

This is similar to the interest payable above. You have to pay salaries to staff, but for some reason, they're not paid, so here you're recognising that you have incurred salaries of 5k and that the salaries are still payable. When you finally do pay the salaries, your entry would be
Dr Salaries payable 5k
Cr Cash 5k

Debit Insurance expense 6,000
Credit Prepaid Insurance 6,000

This is similar to the rent question above. You've previously paid cash for insurance meant for future periods, perhaps the next 12 mths. If that were the case, for each of the next 12 mths, your entry would need to be
Dr Insurance expense 500 (P/L item)
Cr Prepaid insurance 500 (B/S item)

By the end of the 12th mth, your prepaid insurance a/c would have a zero balance.