It is 12/31/1X the end of the fiscal year for JayCO which is a sole proprietorship.

Required 16 pts:

From the information below make all the required adjusting entries needed to bring the accounting system up to date.

A. Depreciation for the year for equipment was calculated to be $68,000. No entry has been made for this amount.

DATE	ACCOUNT	DR	CR
12/31
4

B. On 9/1/X1 the company had entered into a one-year contract to machine and provide 50,000 parts to a small manufacturing company for their product. The total contract was for $1,300,000 and required a prepayment to be made to JayCO in the amount of $150,000. The prepayment was made on 9/1/X1 and the bookkeeper debited Cash and credited Unearned-revenue to record the transaction. At the end of the fiscal year JayCO had provided 10% of the units specified in the contract to their customer. No entry has been made to record the revenue earned by the company.

DATE	ACCOUNT	DR	CR
4

C. JayCO purchased a fire insurance policy on 4/1/1X for $24,000. On that date the bookkeeper debited Prepaid Insurance and credited Cash for $24,000. No other entries have been made in the accounting system for the insurance.

DATE	ACCOUNT	DR	CR
4

D. The company lent $5,000 to one of its employees. At the end of the year $200 in interest was owed to the company by the employee on this loan but will not be paid until next year.

DATE	ACCOUNT	DR	CR
4