Financial Accounting-Acctg. Instructor Turck Part B 128 NAME (7)SupEx(AJES).docx: use your own paper Background Zombie has to complete its 2019 annual report in time for its annual stockholders' meeting as scheduled for February 15, 2020. The following economic events must be properly accounted for before financial statements can be finalized and published in the 2019 annual report. In other words, Zombie needs to prepare end of year Adjusting Journal Entries! read footnotes! Assume Zombie does not issue monthly financial statements and so no Adjusting Journal Entries were needed during the year. (include the proper date for each journal entry) CkFigs: A. All of the 2019 Revenues journalized will make for an increase of $20,100 in 2019 Net Income; B. All of the 2019 Expenses journalized will make for a decrease of $47,525 in 2019 Net Income. (I am 97% confident in the check figures; I don't guarantee them.) Always know the reporting period read footnotes!! What is the reporting period for Zombie? Instructions: follow directions presented in each of the following twelve scenarios. 1. Employees' salaries amount to $15,000 per week (5-day work week). The last payday of 2019 was on Monday, December 24. Payday is every other Monday and paychecks include pay up to the most recent Friday. As shown below, the Unadjusted Balance in Salaries Expense is $762,000. Setting up T-accounts can prove helpful for working out the correct AJE in a. below. Salaries Payable Salaries Expense Beg. Bal. no entries this 5 year Unadj. Bal. -0- Beg. Bal. -0- n/a -> -0- pay-day entries Unadj. Bal. 762,000 762,000 AJE AJE Adj.Bal. Adj.Bal. ""="sum of" or "total of" for the year, this balance is understated. adjust to fix the understatement for the year, this balance is proper. Time-lines or Calendar sketches are often a good idea: Fri Sat Sun 12/20 12/21 12/23 Mon Tue Wed Thur Fri Sat Sun Mon Tue 12/24 12/25 12/26 12/27 12/28 12/29 12/30 12/31 1/1 1/2 Pay- day Wed Thur 1/3 % 1/5 1/6 1/7 Fri Sat Sun Mon Tue 1/8 Pay- day As of midnight on 12/31/19, how many days have employees worked without pay? a. Prepare the necessary AJE to accrue salaries owed but not paid as of 12/31/2019. b. Prepare the external journal entry to record the first pay day in 2020 (i.e., January 7, 2020). (hint: you will need a compound entry involving three accounts) Adjusting Journal Entries (almost) never include Cash. AJES in this SupEx will NOT include Cash. 2 Review the Time Period (i.e., Periodicity) Assumption. SONI