Problem 6 30 points

Prepare the adjusting journal entries needed (if any) on December 31, 2019.

AJE's are only prepared at year end (December 31). 15 points

1. On May 1, 2019, the company paid a one-year premium of $6,000 on an insurance policy that is effective May 31, 2019, and expires May 31, 2020.

2. The company received $18,000 on June 30, 2019, in return for which the company agreed to provide consulting services for 12 months beginning immediately.

3. Employee wages for the prior month are paid on the 1st day of the current month. The monthly payroll (ignoring payroll taxes) is $55,000.

4. On July 11, the company purchased $3,000 of supplies for cash. On September 19, the company made another cash purchase of $2,500. As of December 31, the company accountant determined that $1000 of supplies were remained at year-end.

5. The company received a note from a customer on July 1, 2019, as payment for services. The amount of the note is $1,000 with interest at 6%. The note and interest will be paid on March 31, 2020.