I. CONVERTING ASSETS TO EXPENSES 1. On 10/1/20 ABC Corp. purchases, on account, $12,000 of shop supplies to be used during the period 10/1/20 - 9/30/21. ABC Corp. adjusts its books annually. a. Record the purchase on 10/1/20. b. Prepare the AJE, if any, on 12/31/20. c. Prepare the AJE, if any, on 9/30/21. d. Prepare the AJE, if any, on 12/31/21. e. Record payment of the invoice on 1/6/21. 2. On 11/1/20 Crashum Inc. pays LIMU $6,000 for an auto insurance policy covering the period 12/1/20-5/31/21. Crashum adjusts it books quarterly. a. Record the purchase of the policy on 11/1/20. b. Prepare the AJE, if any, on 11/30/20. c. Prepare the AJE, if any, on 12/31/20. d. Prepare the AJE, if any, on 3/31/21. e. Prepare the AJE, if any, on 5/31/21. f. Prepare the AJE, if any, on 6/30/21. 3. On 12/1/20 Machinee Inc. purchases a machine for $24,000 cash. One the same day, Machinee also purchases a plot of land for $100,000 by signing a 20 year mortgage. Machinee adjusts its books annually. The estimated useful life of the machine is 6 years. Machinee uses the straight-line method of depreciation with a half-year convention. a. Record the purchase of the machine and the land on 12/1/20. b. Prepare the AJE, if any on 12/31/20. c. Prepare the AJE, if any on 3/31/21. d. Prepare the AJE, if any on 12/31/21. e. What is the book value of the machine as of 12/31/20? f. What is the book value of the machine as of 12/31/21? II. CONVERTING LIABILITIES TO REVENUE On 12/1/20 Inky Corp. receives $12,000 for services to be performed from 1/1/21 - 12/31/21. Inky adjusts its books monthly. a. Record the receipt of the cash on 12/1/20. b. Prepare the AJE, if any on 12/31/20. c. Prepare the AJE, if any on 1/31/21. d. Prepare the AJE, if any on 3/31/21. III. ACCRUING UNPAID EXPENSES 1. Payup Corp. pays wages weekly. Payroll for the week-ended 1/5/21 is paid on 1/6/21 in the amount of $14,000. The work week consists of 7 days. Payup adjusts its books monthly.