HH #2: DECEMBER ORIGINAL JES IMPORTANT REMINDERS FOR DECEMBER ORIGINAL JEs A) DON'T FORGET TO CONSULT THE HH CHART OF ACCOUNTS FOR ALL THE ACCOUNT TITLES YOU WILL NEED TO USE AND DON'T FORGET TO USE EXAMPLES IN YOUR CHAPTER 3 NOTES TO ASSIST YOU. B) USE AN ASSET (PREPAID) ACCOUNT FOR ALL PREPAYMENTS HOMER'S MAKES or INSURANCE, ADVERTISING, SUPPLIES, etc.), AND A LIABILITY (UNEARNED) ACCOUNT FOR ALL PAYMENTS RECEIVED in ADVANCE BY HOMER'S C) DON'T INCORPORATE ANY ADJUSTMENT DATA INTO THE ORIGINAL DECEMBER JOURNAL ENTRIES. YOU WILL RECEIVE A SEPARATE DOCUMENT WITH INSTRUCTIONS/INFORMATION ABOUT RECORDING THE AJEs D) SKIP A LINE BETWEEN JE'S. YOU WILL NOT NEED TO USE THE "REF" COLUMN IN JOURNALIZING THE ORIGINAL DECEMBER TRANSACTIONS. WE WON'T USE THAT COLUMN UNTIL WE GET TO THE POSTING PROCESS IN HH #3, YOU WILL ONLY NEED TO USE THE FIRST FEW LINES ON GJ PAGE J3, SO DON'T WORRY IF YOU HAVE A LOT OF LINES LEFT OVER ON THAT PAGE. DECEMBER TRANSACTION DATA Homer's prepays $1,200 (cash) for a general insurance policy. The term of the policy is one year, running from 12/1/16 through 11/30/17. Dec 1 Homer's purchases a forklift (Equipment) for $10,000, paying $5,000 in cash and signing a 5 year, $5,000, Note Payable for the remaining amount. Dec 1 Dec 1 Homer's purchases additional Equipment for $2,000, paying cash. Homer's purchases lumber (inventory) for $27,000 from MMLC. Homer's had previously established a $10,000 credit limit with MMLC. After using up that limit (as an Accounts Payable to MMLC), HH pays cash for the remaining amount. Dec 4