ACC - Prepare the adjusting journal entries
Prepare the adjusting journal entries needed (if any) on December 31, 2013. AJE's are only prepared at year end (December 31). 15 points
1.On July 31, 2013, the company paid a two-year premium of $18,000 on an insurance 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 the company 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. On September 14, the company made another cash purchase of $2,100. As of December 31, the company accountant determined that $1,600 of supplies
were 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.
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