(12 points) Visit the homework-related module in Canvas and find the Excel spreadsheet for traditional homework item no. 14. The spreadsheet contains the unadjusted trial balance for Acme Company for the year ended 12-31-16. Acme only prepares AJEs once each year as of year-end. Prepare the AJEs for the following situations:

Included in Acmes cash account is an interest-bearing checking account. As of 12-31-16, Acme had earned, but not yet recorded, $250 of interest income.

Acmes prepaid rent balance of $8,000 relates to Acmes January 2016 rent. During February, 2016 Acme paid $120,000 of rent for the period of February 1, 2016 to January 31, 2017. Acme recorded the payment in a temporary account.

As of 12-31-16, Acme had $1,000 of office supplies on hand (based on a physical count of its office supplies).

Acmes prepaid insurance balance of $4,200 relates to Acmes January through March 2016 insurance. During March, 2016 Acme paid $18,000 of insurance for the period of April 1, 2016 to March 31, 2017. Acme recorded the payment in a temporary account.

Acme calculated $26,000 of annual depreciation expense.

As of 12-31-16, Acme incurred, but did not yet pay, $11,000 of wage expense and $5,200 of utilities expense.

On 12-15-16, Acme received $15,000 from a customer for work Acme will perform during 2017.

Acmes note payable has been outstanding since November 1, 2016. Its a 4%, one-year note. The note requires Acme to pay interest every quarter with the first interest payment due on February 1, 2017.

Acmes income tax rate is 30%.

Post the necessary AJEs to the Excel spreadsheet.

Using formulas within the Excel spreadsheet, calculate the adjusted debit and credit balances for each account.

Using the adjusted account balances, prepare, in good form, Acmes income statement for the year ended 12-31-16 and Acmes balance sheet as of 12-31-16.

Traditional Homework Item no. 14
Acme Company
12/31/16
	Unadjusted		Adjustments		Adjusted
ACCOUNT	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$400,000		$15,000		$415,000
Accounts receivable	243,000				243,000
Interest receivable	0		250		250
Prepaid rent	8,000		2,000		10,000
Prepaid office supplies	1,500			$500	1,000
Prepaid insurance	4,200		300		4,500
Property, plant, and equipment	626,000				626,000
Accumulated depreciation		$110,000		26,000		$136,000
Notes payable		50,000				50,000
Accrued wages payable		0		11,000		11,000
Accrued utilities payable		0		5,200		5,200
Accrued interest payable		0		333		333
income taxes payable		0		114,665		114,665
Unearned service revenue		0		15,000		15,000
Common stock, $1 par value		50,000				50,000
Additional paid-in-capital		250,000				250,000
Retained earnings		300,000				300,000
Service revenue		1,288,700				1,288,000
Interest income		0		250		250
Rent expense	120,000			2,000	118,000
Office supplies expense	6,000		500		6,500
Insurance expense	18,000			300	17,700
Depreciation expense	0		26,000		26,000
Wage expense	540,000		11,000		551,000
Utilities expense	57,000		5,200		62,200
Interest expense	0		333		333
Other operating expenses	25,000				25,000
Income tax expense	0		114,665		114,665
	$2,048,700	$2,048,700	$205,248	$205,248	$2,251,148	$2,251,148