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Prepare the AJEs that should be made on 09-30-13, the end of the accounting year, for each of the following situations. If no AJE is required, indicate “none.” Assume the firm only makes AJEs at the end of the accounting year.

a) On July 1, 2013, the firm collected $18,000 of rent for 12 months in advance. The journal entry to record the receipt included a credit to an income statement account.

b) On February 1, 2013, the company borrowed $120,000 at 4%. The principle is due on February 1, 2017. The interest is due every six months and the first interest payment took place on August 1, 2013.

c) On June 1, 2011, the company borrowed $2,500,000 for five years at 3%. Interest is due and payable every quarter and the first interest payment took place on September 1, 2011. The principle is payable in five equal installments and the first principle payment took place on June 1, 2012.

d) On February 1, 2013 the firm paid $1,600 for an 8-month equipment rental. The journal entry to record the payment included a debit to a real account.

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Jamar Ferry
Jamar FerryLv2
28 Sep 2019

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(5 points) On August 1, 2014 Y borrowed $1,000,000 at 3%. Y pays interest every 6 months with interest payments every February 1 and August 1. Y will repay $400,000 of the principal on August 1, 2015 and the remainder on February 1, 2016. Assume Y only makes AJEs every December 31 AND does NOT make reversing entries. Prepare the entries Y should make on:

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(0.5 point each) Prepare the AJEs that should be made on 09-30-13, the end of the accounting year, for each of the following situations. If no AJE is required, indicate “none.” Assume the firm only makes AJEs at the end of the accounting year.

On July 1, 2013, the firm collected $18,000 of rent for 12 months in advance. The journal entry to record the receipt included a credit to an income statement account.

On February 1, 2013, the company borrowed $120,000 at 4%. The principle is due on February 1, 2017. The interest is due every six months and the first interest payment took place on August 1, 2013.

On June 1, 2011, the company borrowed $2,500,000 for five years at 3%. Interest is due and payable every quarter and the first interest payment took place on September 1, 2011. The principle is payable in five equal installments and the first principle payment took place on June 1, 2012.

On February 1, 2013 the firm paid $1,600 for an 8-month equipment rental. The journal entry to record the payment included a debit to a real account.

Please explain well and show each step:

Prepare AJEs that should be made on 12-31-15, the end of the accounting year, for each of the following situations. If no AJE is required, indicate “none.” Assume the company only makes AJEs at the end of the accounting year. In addition, identify the impact, if any, on the financial statements if you failed to make the appropriate AJE. Indicate NE for no impact, U for understatement, and O for overstatement. Use the following format to indicate the impact of failing to make the required entry for each situation.

Assets Liabilities Expenses Revenues Net Income Owners’ Equity

XX XX XX XX XX XX

a) On July 1, 2015, the company rented a machine for 10 months and paid $5,000 in advance. The journal entry to record the payment included a debit to a permanent account.

b) On March 1, 2015, the company collected $1,800 of rent for 12 months in advance. The journal entry to record the receipt included a credit to a balance sheet account.

c) On September 1, 2015, the company collected $6,000 as rent for 6 months in advance. The journal entry to record the receipt included a credit to a temporary account.

d) On February 1, 2015, the company invested in a $100,000, 10-year bond that pays 3% interest every six months starting August 1, 2015.

e) On April 30, 2015, the company rented equipment for 10 months and paid $10,000 in advance. The journal entry to record the payment included a debit to a temporary account.

The information listed below was obtained from the accountingrecords of williams company as of dec. 31, 2013 the end of thecompany's fiscal year'

a) On August 1, 2013, the company borrowed $120,000 from theBank of Wistful Vista. The loan was for 12 months at 9 percentinterest payable at maturity date.

b) Finished goods inventory on January 1, 2013 was $200,000 andon Dec. 31, 2013 it was $260,000. Cost of goods sold was 2,400,000the company uses a perpetual inventory system

c) The company owned some property (land) that was rented to J.McArthur on April 1, 2013 for 12 months for $8,400. On April 1, theentire rental of $8400 was credited to rent collected in advanceand cash was debited.

d) On Sept. 1, 2013 the company loaned $60000 to an outsideparty. The loan was at 10 percent per annum and was due in sixmonths; interest is payable at maturity. Cash was credited for60000 and notes receivable was debited on sept. 1 for the entireammount

e) Accrued salaries and wages are $18000 at Dec 31 2013

f) On January 1 2013 factory supplies on hand equaled $200.During 2013 factory supplies costing $4000 were purchased anddebited to factory supplies inventory. At the end of 2013, aphysical inventory count showed that factory supplies on handequaled $800

Prepare journal entries to adjust the books of Williams Companyat Dec 31 2013

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