Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone help me with my homework please. ASAP 3. (11 points) Prepare the Adjusting Journal Entries (AJEs) that should be made on December 31,

Can someone help me with my homework please. ASAP image text in transcribed
3. (11 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 March 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 permanent account. b. On August 31, 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 temporary account. c. On September 30, 2018, the firm collected $2,000 of rent for 2 months in advance. The journal entry to record the receipt included a credit to a balance sheet account. d. On August 1, 2018, the firm collected $3,000 of rent for 3 months in advance. The journal entry to record the receipt included a credit to an income statement account. e. On December 1, 2018, the firm paid $6,000 for a 6-month insurance policy. The journal entry to record the payment included a debit to a balance sheet account, f. On May 1, 2018, the firm paid $12,000 for a 12-month rental of a machine. The journal entry to record the payment included a debit to an income statement account. g. On March 31, 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 a permanent account. h. On October 1, 2018, the firm paid $1,000 for a 1-month rental of a machine. The journal entry to record the payment included a debit to a temporary account. i. On March 1, 2018, the company borrowed 480,000 at 4%. The principle is due on March 1, 2019. The interest is due every three months and the company made the first interest payment on June 1, 2018 j. On August 1, 2017, the company borrowed $4,000,000 for four years at 6%. The interest is due and payable every year on August 1. The principle is due and payable in four equal installments on August 1, 2018, 2019, 2020, and 2021. The company made its interest and principle payments as required. k. On September 30, 2018, the firm bought $200,000 of 3%, three- year bonds. The firm paid $200,000 for this investment. The company will collect $3,000 of interest on the bonds every six months starting on March 31, 2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting At War The Politics Of Military Finance

Authors: Warwick Funnell, Michele Chwastiak

1st Edition

1138616737, 9781138616738

More Books

Students also viewed these Accounting questions

Question

Identify ways to increase your selfesteem.

Answered: 1 week ago