Answered Essay: Please explain well and show each step:

Please explain well and show each step:

Prepare AJEs that should be made on 12-31-15, the end of the accounting year, for each of the following situations. If no AJE is required, indicate “none.” Assume the company only makes AJEs at the end of the accounting year. In addition, identify the impact, if any, on the financial statements if you failed to make the appropriate AJE. Indicate NE for no impact, U for understatement, and O for overstatement. Use the following format to indicate the impact of failing to make the required entry for each situation.

Assets                        Liabilities                Expenses                                    Revenues                                    Net Income               Owners’ Equity

XX                              XX                              XX                              XX                              XX                              XX

a) On July 1, 2015, the company rented a machine for 10 months and paid $5,000 in advance. The journal entry to record the payment included a debit to a permanent account.

b) On March 1, 2015, the company collected $1,800 of rent for 12 months in advance. The journal entry to record the receipt included a credit to a balance sheet account.

c) On September 1, 2015, the company collected $6,000 as rent for 6 months in advance. The journal entry to record the receipt included a credit to a temporary account.

d) On February 1, 2015, the company invested in a $100,000, 10-year bond that pays 3% interest every six months starting August 1, 2015.

e) On April 30, 2015, the company rented equipment for 10 months and paid $10,000 in advance. The journal entry to record the payment included a debit to a temporary account.

Expert Answer

 

1) Adjusting Entries
S.No Accounting titles & Explanations Debit Credit
a. Rent expense 2,500
prepaid rent 2,500
(5000/10)*5
Assets liabilities expense revenues net income ownrs Equ
o ne u ne o o.
2) b. unearned rent 1500
rent income 1,500
(1800/12*10)
Assets liabilities expense revenues net income ownrs Equ
ne o ne u u u
3) c. rent income 2,000
unearned rent 2,000
(6000/6)*2
Assets liabilities expense revenues net income ownrs Equ
ne u. ne o o O.
4) d. interest receivable 1250
interest income 1,250
(100,000*3%*5/12)
Assets liabilities expense revenues net income ownrs Equ
U NE ne U U U
5) E. prepaid rent 2,000
rent expense 2,000
(10000/10)*2
Assets liabilities expense revenues net income ownrs Equ
U NE O NE O O.
Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

STEP 1

Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

STEP 2

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

STEP 3

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.

STEP 4

Receive your Paper

After Editing, your paper will be sent to you via email.

× How can I help you?