28 Financial Accounting -- Aects Instructor-Turck NAME (7)SupEx(AJES).docx use your own paper Part Background Zombie has to complete its 2019 annual report in time for its annual stockholders' meeting as scheduled for February 15, 2020. The following economic events must be properly accounted for before financial statements can be finalized and published in the 2019 annual report. In other words, Zombie needs to prepare end of year Adjusting Journal Entries radical Assume Zombie does not issue monthly financial statements and so no Adjusting Journal Entries were needed during the year. (include the proper date for each journal entry) CkFigs: A. All of the 2019 Revenues journalized will make for an increase of S20,100 in 2019 Net Income B. All of the 2019 Expenses journalized will make for a decrease of S47,525 in 2019 Net Income. (I am 97% confident in the check figures: I don't guarantee them.) Always know the reporting perioda rand forei's What is the reporting period for Zombie? Instructions: follow directions presented in each of the following twelve scenarios. 1. Employees salaries amount to 515,000 per week (5-day work week). The last payday of 2019 was on Monday, December 24. Payday is every other Monday and paychecks include pay up to the most recent Friday. As shown below, the Unadjusted Balance in Salaries Expense is S762,000. Setting up T-accounts can prove helpful for working out the correct AJE in a. below Salaries Payable Salaries Expense Beg. Bal -- no entries this year n/a payday entries 762.000 Unaj. Bal Unadj. Hal 762,000 for the year, this balance is understate AJE AJE + adjust to fix the understatement Adal Adj Bal --for the year, this balance is proper Time-lines or Calendar sketches are often a good idea: Fri M Te Wels Pwy Pw day An of midnight on 123/19, how many days have employees worked without pay? 1. Prepare the necessary AJE to accrue salaries owed but not paid as of 12/31/2019. b. Prepare the external journal entry to record the first pay day in 2020 (i.c., January 7.2020). (hint: you will need a compound entry involving three accounts) WS Adjusting Journal Entries cames seves include Ch. AJEs in this Suplex will NOT include Cush Review the Time Periode, Periodicity) Asumption 3 52 |AM|JASON DFIMAMIA SONI Financial Accounting-Acctg (7)SupEx(AJES).docx: Instructor-Turck NAME use your own paper Part B (continued) 2. On November 1, 2019. Zombie debited Prepaid Rent when it paid its equipment rental of $6,000. The payment represents rent costs for the months of November through January a Reconstruct the external journal entry that was recorded back on November 1, 2019. b. Prepare the necessary AJE to account for rent used during November and December 3. On December 1, 2019, the company received $3,000 in cash from a tenant that is renting office space in Zombie's building. The cash receipt, representing rent for December, January February and March, was balanced in the accounting system with a credit to Deferred Rent Revenue. 2. Reconstruct the external journal entry that was recorded back on December 1, 2019. b. Prepare the necessary AJE to account for service provided to tenant during 2019. 4. On June 1, 2019, the company borrowed S100.000 from the bank. The loan contract requires original principal plus interest at a 6% annual rate to be paid on January 1, 2020. a. Reconstruct the external journal entry that would have been recorded back on June 1, 2019. b. Prepare the necessary AJE to account for interest owed at 12/31/2019. c. Try to prepare the January 1, 2020 necessary journal entry required at maturity of the loan (hint: you will need a compound entry involving three accounts) 5. On October 1, 2019. Zombie lent $60,000 to another company. A promissory note was signed stating original principal plus interest at a 9% annual rate is due to be paid back on October 1, 2020, a Reconstruct the external journal entry that was recorded back on October 1, 2019. b. Prepare the necessary AJE to account for interest earned during 2019. c. Try to prepare the external October 1, 2020 journal entry required at maturity of the loan. (hint you will need a compound entry involving four accounts) Principal mually refers to the original amount borrowed Interest Rates are always stated in a rates Calculate the monthly or daily interest rates as follows: (monthly interest rate interest rate! 12 mos) or (daily interest rate mal interest rate: 365 days) 4 A MAISON D&F MAMA SI 0N A MAISON D&F MAMA SI 0N