Accounting:

It is $\frac{12}{31}\frac{?}{1x}$ the end of the fiscal year for JayCO which is a sole proprietorship.

Required $16$ pts:

From the information below make all the required adjusting entries needed to

bring the accounting system up to date.

A$.$ Depreciation for the year for equipment was calculated to be $$68,000.$ No

entry has been made for this amount.

B$.$ On $9/1/$X$1$ the company had entered into a one$-$year contract to machine and

provide $50,000$ parts to a small manufacturing company for their product. The

total contract was for $$1,300,000$ and required a prepayment to be made to

JayCO in the amount of $$150,000.$ The prepayment was made on $\frac{9}{1}\frac{?}{x1}$ and the

bookkeeper debited Cash and credited Unearned$-$revenue to record the

transaction. At the end of the fiscal year JayCO had provided $10\%$ of the units

specified in the contract to their customer. No entry has been made to record the

revenue earned by the company.

C$.$ JayCO purchased a fire insurance policy on $\frac{4}{1}\frac{?}{1x}$ for $$24,000.$ On that date

the bookkeeper debited Prepaid Insurance and credited Cash for $$24,000.$ No

other entries have been made in the accounting system for the insurance.

D$.$ The company lent $$5,000$ to one of its employees. At the end of the year $$200$ in

interest was owed to the company by the employee on this loan but will not be

paid until next year.