Aylmer Inc has a December 31, 2022 year end. Aylmer does not perform monthly adjusting entries....

Transcribed Image Text:

Aylmer Inc has a December 31, 2022 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 $7,800 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 $3,800 that will be paid in January. 3 On September 1, Aylmer borrowed $32,000 with an interest rate of 4%. Principle plus interest will be paid back on June 30, 2023. 4 On November 1, Aylmer received $94,000 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 $40,000. The truck has a 5year useful life with no residual value. REQUIRED Prepare the appropriate adjusting or correcting entry for each independent item above Item # ACCOUNT NAME DEBIT CREDIT Aylmer Inc has a December 31, 2022 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 $7,800 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 $3,800 that will be paid in January. 3 On September 1, Aylmer borrowed $32,000 with an interest rate of 4%. Principle plus interest will be paid back on June 30, 2023. 4 On November 1, Aylmer received $94,000 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 $40,000. The truck has a 5year useful life with no residual value. REQUIRED Prepare the appropriate adjusting or correcting entry for each independent item above Item # ACCOUNT NAME DEBIT CREDIT

Answer rating: 100% (QA)

1 Adjusting Entry for Prepaid Insurance December 31 2022 Debit I... View the full answer