1.Prepare AJEs that should be made on 12-31-15, the end of the accounting year, for each of the following situations. If no AJE is required, indicate "none." Assume the company only makes AJEs at the end of the accounting year. In addition, identify the impact, if any, on the financial statements if you failed to make the appropriate AJE.Indicate NE for no impact, U for understatement, and O for overstatement. Use the following format to indicate the impact of failing to make the required entry for each situation.

AssetsLiabilitiesExpenses Revenues Net IncomeOwners' Equity

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a.On June 1, 2015, the company rented a machine for 6 months and paid $30,000 in advance. The journal entry to record the payment included a debit to a permanent account.

b.On March 31, 2015, the company collected $12,000 of rent for 6 months in advance. The journal entry to record the receipt included a credit to a temporary account.

c.On September 30, 2015, the company collected $36,000 as rent for 6 months in advance. The journal entry to record the receipt included a credit to a permanent account.

d.On June 30, 2015, the company rented equipment for 12 months and paid $24,000 in advance. The journal entry to record the payment included a debit to a temporary account.