Prepare the adjusting journal entries

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Prepare the adjusting journal entries needed (if any) on December 31, 2013. AJE's are only prepared at year end (December 31). 

1.On July 31, 2013, the company paid a two-year premium of $18,000 on an insurance policy that is effective June 1, 2013, and expires May 31, 2015.

2.The company received $48,000 on May 1, 2013, in return for which the company agreed to provide consulting services for 12 months beginning immediately.

3.Employees work Monday through Friday, and salaries of $3,500 per week are paid each  Friday. This year December 31 is a Thursday.

4.on June 15, the company purchased $1,300 of supplies for cash. On September 14, the company made another cash purchase of $2,100. As of December 31, the company accountant determined that $1,600 of supplies  were on hand at year end.

5.The company received a note from a customer on May 31, 2013, as  payment for services. The amount of the note is $20,000 with interest at 8%.  The note and interest will be paid on May 31, 2014.

Reference no: EM13228514

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