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Problem - On January 1, 2018, Aye Java paid its insurance premium for the year of $6,000. Also on January 1, 2018, the company also purchased equipment for $12,000 and expects to have it in use for 60 months with no salvage value. The company also purchased furniture at the start of the month for $2,400 and is using a useful life of 48 months. The company decided to prepay two months of rent, handing the landlord a check for $7,000. Finally, at the end of January, Aye Java had $2,000 worth of supplies. Create adjusting entries for the month of January in the space provided below. Use the information provided to answer the following questions to complete the worksheet for Aye Java.
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