Part 2

Determine if the following transactions for Everon Corporation require an adjustment. If an adjusting entry is required, give the correct entry. Where applicable, write the original entry first and then the adjusting entry.

1. At the beginning of the month, Everon agreed to perform services for the next four months for Maston, Inc. for $25,000 per month. Ford paid Michigan $100,000 cash in advance. One month has now passed.
2. Everon pays its employees every two weeks. At the end of the month, Everon owes its employees $75,000 but will not pay them until the following week.
3. Everon paid $60,000 cash for rent at the beginning of the month by debiting prepaid rent and crediting cash. This amount covered six months of occupancy, but only one month has passed.
4. At the beginning of the year, Everon bought supplies from Douglas Implements for $4,500 cash per month for twelve months. A physical count at year-end revealed supplies worth $1,500 were still left over. Complete the original journal entry followed by the adjusting entry.

This is a template. You may use it to add or to delete information and data to complete your assignment. It is not a substitute ACT300 Principles of Accounting | Module 3: Critical Thinking Template Option #2, Part 2 Journal Entries Student Name: Original Entry Transaction Number Account Name 1 Adjusting Entry Account Name Memo Debit Credit Memo Debit Credit 2 3 4