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. . Following are some transactions for Crumbly Inc. during 2020. Instructions: Record each transaction below and post all non-cash components of each entry into

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. . Following are some transactions for Crumbly Inc. during 2020. Instructions: Record each transaction below and post all non-cash components of each entry into a T account. If you are not told what account to debit with an expenditure, debit an asset unless told otherwise. Create all the necessary adjusting journal entries at year-end. For each AJE, show your computations below the entry and indicate the type of AJE you have recorded. Create all the cash entries in the next year (2021) implied by the accrued expense and accrued revenue AJES. January 31: Crumbly purchased an office building for $320,000 and paid for the purchase with a long-term 5% note payable. Interest on the principal of the note is due every six months with the principal due in 15 years. February 1: Crumbly rented out a portion of its office building to another company. The renter signed a rental lease for the period of February 1, 2020 to January 31, 2021, and prepaid the annual rent amount of $63,000 in cash. March 28: Crumbly purchased 55,800 of supplies with cash. Crumbly's policy is to debit Supplies Expense when supplies are purchased. April 8: Crumbly purchased a one-year insurance policy that runs from May 1, 2020 to April 30, 2021 for $31,000 cash and paid in full. May 1: Crumbly received $181,900 from Cookie Masters Corp. as a prepayment for Crumbly's consulting services over the next 9 months. July 31: Crumbly paid the first interest payment on the long-term note payable they signed on January 31* (transaction 1 above). July 31: Crumbly loaned a supplier $72,000 in exchange for an 8 month, 7% note. The supplier will pay Crumbly the principal and interest back on March 31. November 15: Crumbly purchased $3,400 of supplies with cash, with the amount debited to Supplies Expense. Year-end information: . Crumbly records straight-line depreciation on buildings, using a 30-year life and no salvage value. December 31* occurs on the 6 workday out of a 10 workday pay period. Salaries for Crumbly's employees total $158,000 for each 10 workday pay period. The employees will receive their paychecks on January 7, 2021. Supplies in the amount of $850 remain on hand on December 31, 2020

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