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ACC - Prepare the adjusting journal entries




Question;Prepare the adjusting journal entries needed (if any) on December 31, 2013.AJE's are only prepared at year end (December 31). 15 points1.On July 31, 2013, the company paid a two-year premium of $18,000 on aninsurance policy that is effective June 1, 2013, and expires May 31, 2015.2.The company received $48,000 on May 1, 2013, in return for which thecompany agreed to provide consulting services for 12 months beginning immediately.3.Employees work Monday through Friday, and salaries of $3,500 per week are paid each Friday. This year December 31 is a Thursday.4.on June 15, the company purchased $1,300 of supplies for cash. OnSeptember 14, the company made another cash purchase of $2,100. As ofDecember 31, the company accountant determined that $1,600 of supplieswere on hand at year end. 5.The company received a note from a customer on May 31, 2013, as payment for services. The amount of the note is $20,000 with interest at 8%. The note and interest will be paid on May 31, 2014.


Paper#41006 | Written in 18-Jul-2015

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