I. CONVERTING ASSETS TO EXPENSES

On $\frac{10}{1}\frac{?}{20}$ 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 $\frac{12}{31}\frac{?}{20}.$

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 $\frac{1}{6}\frac{?}{21}.$

On $\frac{11}{1}\frac{?}{20}$ 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 $\frac{11}{30}\frac{?}{20}.$

c$.$ Prepare the AJE, if any, on $\frac{12}{31}\frac{?}{20}.$

d$.$ Prepare the AJE, if any, on $\frac{3}{31}\frac{?}{21}.$

e$.$ Prepare the AJE, if any, on $\frac{5}{31}\frac{?}{21}.$

f$.$ Prepare the AJE, if any, on $6/30/21.$

On $\frac{12}{1}\frac{?}{20}$ 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 $\frac{12}{1}\frac{?}{20}.$

b$.$ Prepare the AJE, if any on $\frac{12}{31}\frac{?}{20}.$

c$.$ Prepare the AJE, if any on $\frac{3}{31}\frac{?}{21}.$

d$.$ Prepare the AJE, if any on $12/31/21.$

e$.$ What is the book value of the machine as of $\frac{12}{31}\frac{?}{20}?$

f$.$ What is the book value of the machine as of $\frac{12}{31}\frac{?}{21}?$

II$.$ CONVERTING LIABILITIES TO REVENUE

On $12/1/20$ Inky Corp. receives $$12,000$ for services to be performed from $\frac{1}{1}\frac{?}{21}-12/31/21.$ Inky adjusts its books monthly.

a$.$ Record the receipt of the cash on $12/1/20.$

b$.$ Prepare the AJE, if any on $\frac{12}{31}\frac{?}{20}.$

c$.$ Prepare the AJE, if any on $\frac{1}{31}\frac{?}{21}.$

d$.$ Prepare the AJE, if any on $\frac{3}{31}\frac{?}{21}.$

III. ACCRUING UNPAID EXPENSES

Payup Corp. pays wages weekly. Payroll for the week$-$ended $\frac{1}{5}\frac{?}{21}$ is paid on $\frac{1}{6}\frac{?}{21}$ in the amount of $$14,000.$ The work week consists of $7$ days. Payup adjusts its books monthly.