Homework Help is Here – Start Your Trial Now!
Business
Accounting
I. CONVERTING ASSETS TO EXPENSES 1. On 10/1/20 ABC Corp. purchases, on account, $12,000 of shop supplies to be used during the period 10/1/20 - 9/30/21. ABC Corp. adjusts its books annually. a. Record the purchase on 10/1/20. b. Prepare the AJE, if any, on 12/31/20. c. Prepare the AJE, if any, on 9/30/21. d. Prepare the AJE, if any, on 12/31/21. e. Record payment of the invoice on 1/6/21. 2. On 11/1/20 Crashum Inc. pays LIMU $6,000 for an auto insurance policy covering the period 12/1/20-5/31/21. Crashum adjusts it books quarterly. a. Record the purchase of the policy on 11/1/20. b. Prepare the AJE, if any, on 11/30/20. c. Prepare the AJE, if any, on 12/31/20. d. Prepare the AJE, if any, on 3/31/21. e. Prepare the AJE, if any, on 5/31/21. f. Prepare the AJE, if any, on 6/30/21. 3. On 12/1/20 Machinee Inc. purchases a machine for $24,000 cash. One the same day, Machinee also purchases a plot of land for $100,000 by signing a 20 year mortgage. Machinee adjusts its books annually. The estimated useful life of the machine is 6 years. Machinee uses the straight-line method of depreciation with a half-year convention. a. Record the purchase of the machine and the land on 12/1/20. b. Prepare the AJE, if any on 12/31/20. c. Prepare the AJE, if any on 3/31/21. d. Prepare the AJE, if any on 12/31/21. e. What is the book value of the machine as of 12/31/20? f. What is the book value of the machine as of 12/31/21? II. CONVERTING LIABILITIES TO REVENUE On 12/1/20 Inky Corp. receives $12,000 for services to be performed from 1/1/21 - 12/31/21. Inky adjusts its books monthly. a. Record the receipt of the cash on 12/1/20. b. Prepare the AJE, if any on 12/31/20. c. Prepare the AJE, if any on 1/31/21. d. Prepare the AJE, if any on 3/31/21. III. ACCRUING UNPAID EXPENSES 1. Payup Corp. pays wages weekly. Payroll for the week-ended 1/5/21 is paid on 1/6/21 in the amount of $14,000. The work week consists of 7 days. Payup adjusts its books monthly.

I. CONVERTING ASSETS TO EXPENSES 1. On 10/1/20 ABC Corp. purchases, on account, $12,000 of shop supplies to be used during the period 10/1/20 - 9/30/21. ABC Corp. adjusts its books annually. a. Record the purchase on 10/1/20. b. Prepare the AJE, if any, on 12/31/20. c. Prepare the AJE, if any, on 9/30/21. d. Prepare the AJE, if any, on 12/31/21. e. Record payment of the invoice on 1/6/21. 2. On 11/1/20 Crashum Inc. pays LIMU $6,000 for an auto insurance policy covering the period 12/1/20-5/31/21. Crashum adjusts it books quarterly. a. Record the purchase of the policy on 11/1/20. b. Prepare the AJE, if any, on 11/30/20. c. Prepare the AJE, if any, on 12/31/20. d. Prepare the AJE, if any, on 3/31/21. e. Prepare the AJE, if any, on 5/31/21. f. Prepare the AJE, if any, on 6/30/21. 3. On 12/1/20 Machinee Inc. purchases a machine for $24,000 cash. One the same day, Machinee also purchases a plot of land for $100,000 by signing a 20 year mortgage. Machinee adjusts its books annually. The estimated useful life of the machine is 6 years. Machinee uses the straight-line method of depreciation with a half-year convention. a. Record the purchase of the machine and the land on 12/1/20. b. Prepare the AJE, if any on 12/31/20. c. Prepare the AJE, if any on 3/31/21. d. Prepare the AJE, if any on 12/31/21. e. What is the book value of the machine as of 12/31/20? f. What is the book value of the machine as of 12/31/21? II. CONVERTING LIABILITIES TO REVENUE On 12/1/20 Inky Corp. receives $12,000 for services to be performed from 1/1/21 - 12/31/21. Inky adjusts its books monthly. a. Record the receipt of the cash on 12/1/20. b. Prepare the AJE, if any on 12/31/20. c. Prepare the AJE, if any on 1/31/21. d. Prepare the AJE, if any on 3/31/21. III. ACCRUING UNPAID EXPENSES 1. Payup Corp. pays wages weekly. Payroll for the week-ended 1/5/21 is paid on 1/6/21 in the amount of $14,000. The work week consists of 7 days. Payup adjusts its books monthly.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
I. CONVERTING ASSETS TO EXPENSES 1. On 10/1/20 ABC Corp. purchases, on account, $12,000 of shop supplies to be used during the period 10/1/20 - 9/30/21. ABC Corp. adjusts its books annually. a. Record the purchase on 10/1/20. b. Prepare the AJE, if any, on 12/31/20. c. Prepare the AJE, if any, on 9/30/21. d. Prepare the AJE, if any, on 12/31/21. e. Record payment of the invoice on 1/6/21. 2. On 11/1/20 Crashum Inc. pays LIMU $6,000 for an auto insurance policy covering the period 12/1/20-5/31/21. Crashum adjusts it books quarterly. a. Record the purchase of the policy on 11/1/20. b. Prepare the AJE, if any, on 11/30/20. c. Prepare the AJE, if any, on 12/31/20. d. Prepare the AJE, if any, on 3/31/21. e. Prepare the AJE, if any, on 5/31/21. f. Prepare the AJE, if any, on 6/30/21. 3. On 12/1/20 Machinee Inc. purchases a machine for $24,000 cash. One the same day, Machinee also purchases a plot of land for $100,000 by signing a 20 year mortgage. Machinee adjusts its books annually. The estimated useful life of the machine is 6 years. Machinee uses the straight-line method of depreciation with a half-year convention. a. Record the purchase of the machine and the land on 12/1/20. b. Prepare the AJE, if any on 12/31/20. c. Prepare the AJE, if any on 3/31/21. d. Prepare the AJE, if any on 12/31/21. e. What is the book value of the machine as of 12/31/20? f. What is the book value of the machine as of 12/31/21? II. CONVERTING LIABILITIES TO REVENUE On 12/1/20 Inky Corp. receives $12,000 for services to be performed from 1/1/21 - 12/31/21. Inky adjusts its books monthly. a. Record the receipt of the cash on 12/1/20. b. Prepare the AJE, if any on 12/31/20. c. Prepare the AJE, if any on 1/31/21. d. Prepare the AJE, if any on 3/31/21. III. ACCRUING UNPAID EXPENSES 1. Payup Corp. pays wages weekly. Payroll for the week-ended 1/5/21 is paid on 1/6/21 in the amount of $14,000. The work week consists of 7 days. Payup adjusts its books monthly.
Transcribed Image Text:I. CONVERTING ASSETS TO EXPENSES 1. On 10/1/20 ABC Corp. purchases, on account, $12,000 of shop supplies to be used during the period 10/1/20 - 9/30/21. ABC Corp. adjusts its books annually. a. Record the purchase on 10/1/20. b. Prepare the AJE, if any, on 12/31/20. c. Prepare the AJE, if any, on 9/30/21. d. Prepare the AJE, if any, on 12/31/21. e. Record payment of the invoice on 1/6/21. 2. On 11/1/20 Crashum Inc. pays LIMU $6,000 for an auto insurance policy covering the period 12/1/20-5/31/21. Crashum adjusts it books quarterly. a. Record the purchase of the policy on 11/1/20. b. Prepare the AJE, if any, on 11/30/20. c. Prepare the AJE, if any, on 12/31/20. d. Prepare the AJE, if any, on 3/31/21. e. Prepare the AJE, if any, on 5/31/21. f. Prepare the AJE, if any, on 6/30/21. 3. On 12/1/20 Machinee Inc. purchases a machine for $24,000 cash. One the same day, Machinee also purchases a plot of land for $100,000 by signing a 20 year mortgage. Machinee adjusts its books annually. The estimated useful life of the machine is 6 years. Machinee uses the straight-line method of depreciation with a half-year convention. a. Record the purchase of the machine and the land on 12/1/20. b. Prepare the AJE, if any on 12/31/20. c. Prepare the AJE, if any on 3/31/21. d. Prepare the AJE, if any on 12/31/21. e. What is the book value of the machine as of 12/31/20? f. What is the book value of the machine as of 12/31/21? II. CONVERTING LIABILITIES TO REVENUE On 12/1/20 Inky Corp. receives $12,000 for services to be performed from 1/1/21 - 12/31/21. Inky adjusts its books monthly. a. Record the receipt of the cash on 12/1/20. b. Prepare the AJE, if any on 12/31/20. c. Prepare the AJE, if any on 1/31/21. d. Prepare the AJE, if any on 3/31/21. III. ACCRUING UNPAID EXPENSES 1. Payup Corp. pays wages weekly. Payroll for the week-ended 1/5/21 is paid on 1/6/21 in the amount of $14,000. The work week consists of 7 days. Payup adjusts its books monthly.
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

SEE SOLUTION
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS