ADJUSTING ENTRIES

On January 1, 2018, Aye Java paid its insurance premium for the year of $6,000. Also on January 1, 2018, the company also purchased equipment for $12,000 and expects to have it in use for 60 months with no salvage value. The company also purchased furniture at the start of the month for $2,400 and is using a useful life of 48 months. The company decided to prepay two months of rent, handing the landlord a check for $7,000. Finally, at the end of January, Aye Java had $2,000 worth of supplies. Prepare adjusting entries for the month of January in the space provided below. Use the information provided to answer the following questions to complete the worksheet for Aye Java.

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* Income Statement Debit Credit Balance Sheet Debit Credit TAP TO UNMUTE Example Company Worksheet For the Month Ended July 31, 20xx 4 Account Name Trial Balance Adjustments Adjusted Trial Balance 5 Debit Credit Debit Credit Debit Credit 6 Cash 10,000.00 7 Supplies 2,000.00 & Prepaid Rent 5,000.00 9 Equipment 15,000.00 10 Accumulated Depreciation Equip 1,000.00 11 Accounts Payable 5.000.00 12 Smith Capital 26,500.00 13 Smith Drawing 500.00 14 Supplies Expense 15 Rent Expense 16 Depreciation Expense 17 32.500.00 12,500.00 18 19 20 supplies on hand at the end of the period 500 0 21 Depreciation for the month 750 22. Rent was paid in advance at the beginning of the month for the next months Screencast-O-Matic.com Worksheet Example L 85K views