Adjusting Journal Entries: [5129] Assume fiscal years end on Dec. 31. Assume no other entries were made in any year besides the ones indicated and your AJE. 1. Rose Company was formed on March 1, Year 1. On June 1, Year 1, the firm purchased a three-year insurance policy paying $10,800. The policy became effective immediately. When the policy was purchased $10,800 was debited to Insurance Expense while crediting Cash for $10,800. Required: Determine the proper AJES at the ends of Year 1 and Year 2. Year 1: Year 2: 2. Jackson occupies two apartments because it has offices in Los Angeles and New York. Apartment #1 rents for $8,000 per month and apartment #2 rents for $11,000 per month. Apartment #1 was unoccupied until Oct. 1, Year 1, when the firm occupied it and paid the landlord $96,000 for twelve months' rent. Jackson debited Rent Expense for $96,000 when the payment occurred. Apartment #2 was unoccupied until Nov. 1, Year 1, when the firm occupied it. The contract with this landlord called for the payment for the first year to be made at the end of the twelve months on Nov. 1, Year 2. The bookkeepers of Jackson debited Rent Expense and credited Rent Payable both for $132,000 when Jackson moved into apartment #2. Prepare the proper AJE for Dec. 31, Year 1. 3. Early in its first year of existence Meaghan Company bought $9,000 supplies for Cash debiting Supplies Expense while crediting Cash. Very late in the year the firm purchased supplies on account in the amount of $8,000 and debited Supplies Inventory crediting AP. By actual count on December 31, the supplies on hand were properly valued at $2,000. Determine the proper AJE at Dec. 31, Year 1.