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Aylmer Inc has a December 31 year end. Aylmer does not perform monthly adjusting entries. The following items relate to transactions that occurred during the year. 1 On August 1, Aylmer paid $9,000 for an annual insurance premium. The policy began on August 1. The payment was posted to prepaid insurance. 2 On December 31, Aylmer owes the employees $3,600 that will be paid in January. 3 On December 1, Aylmer borrowed $30,000 with an interest rate of 8%. Principle plus interest will be paid back on June 30, 2021. 4 On November 1, Aylmer received $52,000 in advance of performing a specific job. At December 31, 40% of the work has been completed. 5 On October 1, Aylmer purchased a truck for $28,000. The truck has a 5 year useful life with no residual value. 6 At the end of December, the company had not received the monthly utility invoice. It is estimated that the bill would be approximatly $3,600. ED Prepare the appropriate adjusting or correcting entry for each independent item above Item # ACCOUNT NAME DEBIT CREDIT

Aylmer Inc has a December 31 year end. Aylmer does not perform monthly adjusting entries. The following items relate to transactions that occurred during the year. 1 On August 1, Aylmer paid $9,000 for an annual insurance premium. The policy began on August 1. The payment was posted to prepaid insurance. 2 On December 31, Aylmer owes the employees $3,600 that will be paid in January. 3 On December 1, Aylmer borrowed $30,000 with an interest rate of 8%. Principle plus interest will be paid back on June 30, 2021. 4 On November 1, Aylmer received $52,000 in advance of performing a specific job. At December 31, 40% of the work has been completed. 5 On October 1, Aylmer purchased a truck for $28,000. The truck has a 5 year useful life with no residual value. 6 At the end of December, the company had not received the monthly utility invoice. It is estimated that the bill would be approximatly $3,600. ED Prepare the appropriate adjusting or correcting entry for each independent item above Item # ACCOUNT NAME DEBIT CREDIT

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Aylmer Inc has a December 31 year end. Aylmer does not perform monthly adjusting entries. The following items relate to transactions that occurred during the year. 1 On August 1, Aylmer paid $9,000 for an annual insurance premium. The policy began on August 1. The payment was posted to prepaid insurance. 2 On December 31, Aylmer owes the employees $3,600 that will be paid in January. 3 On December 1, Aylmer borrowed $30,000 with an interest rate of 8%. Principle plus interest will be paid back on June 30, 2021. 4 On November 1, Aylmer received $52,000 in advance of performing a specific job. At December 31, 40% of the work has been completed. 5 On October 1, Aylmer purchased a truck for $28,000. The truck has a 5 year useful life with no residual value. 6 At the end of December, the company had not received the monthly utility invoice. It is estimated that the bill would be approximatly $3,600. ED Prepare the appropriate adjusting or correcting entry for each independent item above Item # ACCOUNT NAME DEBIT CREDIT
Transcribed Image Text:Aylmer Inc has a December 31 year end. Aylmer does not perform monthly adjusting entries. The following items relate to transactions that occurred during the year. 1 On August 1, Aylmer paid $9,000 for an annual insurance premium. The policy began on August 1. The payment was posted to prepaid insurance. 2 On December 31, Aylmer owes the employees $3,600 that will be paid in January. 3 On December 1, Aylmer borrowed $30,000 with an interest rate of 8%. Principle plus interest will be paid back on June 30, 2021. 4 On November 1, Aylmer received $52,000 in advance of performing a specific job. At December 31, 40% of the work has been completed. 5 On October 1, Aylmer purchased a truck for $28,000. The truck has a 5 year useful life with no residual value. 6 At the end of December, the company had not received the monthly utility invoice. It is estimated that the bill would be approximatly $3,600. ED Prepare the appropriate adjusting or correcting entry for each independent item above Item # ACCOUNT NAME DEBIT CREDIT
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