3. Accrual Based Accounting Adjusting Journal Entries (AJEs): On April 1st, 2019, Moving On, Inc. has a $830 beginning balance in the Supplies account. On May 5th, 2019, Moving On purchases an additional $1,765 worth of supplies, paying cash. At the end of the quarter, June 30th, 2019, only $690 worth of supplies remain.

a. Record the journal entry Moving On would make on May 5th 2019 when it purchases the $1,765 worth of supplies.

b. Record the adjusting entry Moving On would make to recognize Supplies Expense on June 30th 2019. Assume Moving On uses a quarterly accounting period which ends on June 30th 2019 and adjusting entries are only made at the end of the quarterly accounting period on 6/30 (i.e. assume no adjusting entries have been recorded yet for the quarter).

c. Calculate the adjusted balances of both the Supplies account and the Supplies Expense account as of 6/30/2019. Assume the balance of the Supplies account as of 4/1/2019 was $830 (as given above) and the balance of the Supplies Expense account was $0 as of 4/1/2019 and there are no other transactions.

d. What if Moving On did not make the adjusting entry on 6/30/2019 to recognize Supplies Expense? Indicate by how much the second quarter ending 6/30/2019s 1) assets, 2) liabilities, 3) revenues, 4) expenses, 5) net income, 6) retained earnings, and 7) SHE would be either under-or overstated if this adjusting entry were not recorded. If no effect, write no effect.

4. Accrual Based Accounting Adjusting Journal Entries (AJEs): On August 1st, 2020, The Androids Dungeon & Baseball Card Shop borrowed $21,000 from the 1st Bank of Springfield, signing a note payable. This note is due in 5 years and has a 4% annual interest rate. The firm pays interest annually, every July 31st. The first interest payment is due July 31st, 2021.

a. Record the journal entry The Androids Dungeon would make on August 1st, 2020, when it initially borrows the $21,000 from the bank.

b. Record the adjusting entry The Androids Dungeon would make to recognize Interest Expense on December 31st, 2020. Assume The Androids Dungeon uses an annual accounting period which ends on December 31st, 2020 and adjusting entries are only made at the end of the annual accounting period on 12/31 (i.e. assume no adjusting entries have been recorded yet for the year).

c. Calculate the adjusted balances of both the Interest Payable account and the Interest Expense account as of 12/31/2020. Assume the balance of the Interest Payable account and the balance of the Interest Expense account as of 8/1/2020 were both $0 and there are no other transactions.

d. What if The Androids Dungeon did not make the adjusting entry on 12/31/2020 to recognize Interest Expense? Indicate by how much the year ending 12/31/2020s 1) assets, 2) liabilities, 3) revenues, 4) expenses, 5) net income, 6) retained earnings, and 7) SHE would be either under- or overstated if this adjusting entry were not recorded. If no effect, write no effect.

e. Record the journal entry The Androids Dungeon would make on July 31st, 2021, when it makes its first annual interest payment to the bank.