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 1 On September 1, Aylmer paid $6,000 for an annual insurance premium. The policy began on September 1. The payment was posted to prepaid insurance. 2 On December 31, Aylmer owes the employees $4,000 that will be paid in January. 3 On September 1, Aylmer borrowed $30,000 with an interest rate of 2%. Principle plus interest will be paid back on June 30, 2021. 4 On November 1, Aylmer received $100,000 in advance of performing a specific job. At December 31, 30% of the work has been completed. 5 On October 1, Aylmer purchased a truck for $15,000. 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 $1,000. Prepare the appropriate adjusting or correcting entry for each independent item above
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 1 On September 1, Aylmer paid $6,000 for an annual insurance premium. The policy began on September 1. The payment was posted to prepaid insurance. 2 On December 31, Aylmer owes the employees $4,000 that will be paid in January. 3 On September 1, Aylmer borrowed $30,000 with an interest rate of 2%. Principle plus interest will be paid back on June 30, 2021. 4 On November 1, Aylmer received $100,000 in advance of performing a specific job. At December 31, 30% of the work has been completed. 5 On October 1, Aylmer purchased a truck for $15,000. 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 $1,000. Prepare the appropriate adjusting or correcting entry for each independent item above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
1 On September 1, Aylmer paid $6,000 for an annual insurance premium. The policy began on September 1. The payment was posted to prepaid insurance.
2 On December 31, Aylmer owes the employees $4,000 that will be paid in January.
3 On September 1, Aylmer borrowed $30,000 with an interest rate of 2%. Principle plus interest will be paid back on June 30, 2021.
4 On November 1, Aylmer received $100,000 in advance of performing a specific job. At December 31, 30% of the work has been completed.
5 On October 1, Aylmer purchased a truck for $15,000. 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 $1,000.
Prepare the appropriate adjusting or correcting entry for each independent item above
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