The spreadsheet contains the unadjusted trial balance for Acme Company for the year ended 12-31-16. Acme only prepares AJEs once each year as of year-end. Prepare the AJEs for the following situations:

Included in Acmes cash account is an interest-bearing checking account. As of 12-31-16, Acme had earned, but not yet recorded, $250 of interest income.

Acmes prepaid rent balance of $8,000 relates to Acmes January 2016 rent. During February, 2016 Acme paid $120,000 of rent for the period of February 1, 2016 to January 31, 2017. Acme recorded the payment in a temporary account.

As of 12-31-16, Acme had $1,000 of office supplies on hand (based on a physical count of its office supplies).

Acmes prepaid insurance balance of $4,200 relates to Acmes January through March 2016 insurance. During March, 2016 Acme paid $18,000 of insurance for the period of April 1, 2016 to March 31, 2017. Acme recorded the payment in a temporary account.

Acme calculated $26,000 of annual depreciation expense.

As of 12-31-16, Acme incurred, but did not yet pay, $11,000 of wage expense and $5,200 of utilities expense.

On 12-15-16, Acme received $15,000 from a customer for work Acme will perform during 2017.

Acmes note payable has been outstanding since November 1, 2016. Its a 4%, one-year note. The note requires Acme to pay interest every quarter with the first interest payment due on February 1, 2017.

Acmes income tax rate is 30%.

spreadsheet

Acme Company
12/31/16
	Unadjusted		Adjustments		Adjusted
ACCOUNT	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$400,000
Accounts receivable	243,000
Interest receivable	0
Prepaid rent	8,000
Prepaid office supplies	1,500
Prepaid insurance	4,200
Property, plant, and equipment	626,000
Accumulated depreciation		$110,000
Notes payable		50,000
Accrued wages payable		0
Accrued utilities payable		0
Accrued interest payable		0
income taxes payable		0
Unearned service revenue		0
Common stock, $1 par value		50,000
Additional paid-in-capital		250,000
Retained earnings		300,000
Service revenue		1,288,700
Interest income		0
Rent expense	120,000
Office supples expense	6,000
Insurance expense	18,000
Depreciation expense	0
Wage expense	540,000
Utilities expense	57,000
Interest expense	0
Other operating expenses	25,000
Income tax espense	0
	$2,048,700	$2,048,700