4. (10 points) Prepare the Adjusting Journal Entries (AJEs) that should be made on December 31, 2018, the end of the accounting year, for each of the following independent situations. If no AJE is required, indicate "none." Assume the firm only makes AJEs at the end of the accounting year. a. On August 1, 2018, the firm collected $6,000 of rent for 12 months in advance. The journal entry to record the receipt included a credit to a temporary account. On May 1, 2018, the firm collected $12,000 of rent for 12 months in advance. The journal entry to record the receipt included a credit to a balance sheet account. On March 31, 2018, the firm collected $5,000 of rent for 5 months in advance. The journal entry to record the receipt included a credit to a permanent account. d. On July 31, 2018, the firm collected $6,000 of rent for 3 months in advance. The journal entry to record the receipt included a credit to an income statement account. e. On March 1, 2018, the firm paid $6,000 for a 12-month insurance policy. The journal entry to record the payment included a debit to a permanent account. f. On September 1, 2018, the firm paid $2,500 for a 2-month rental of a machine. The journal entry to record the payment included a debit to a balance sheet account. g. On February 1, 2018, the firm paid $6,000 for a 6-month rental of a machine. The journal entry to record the payment included a debit to an income statement account. h. On October 31, 2018, the firm paid $8,000 for a 4-month rental of a machine. The journal entry to record the payment included a debit to a temporary account. On March 1, 2018, the company borrowed $900,000 at 3%. The principle is due on March 1, 2019. The interest is due every three months and the first interest payment took place on June 1, 2018. On March 1, 2014, the company borrowed $2,400,000 for ten years at 6%. The interest is due and payable every six months and the first interest payment took place on September 1, 2014. The principle is due and payable in ten equal installments and the first principle payment took place on March 1, 2015
