Baby Steps Company makes AJES at year-end of December 31 only (i.e. no monthly AJES are...

 

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Baby Steps Company makes AJES at year-end of December 31 only (i.e. no monthly AJES are made). Prepare the December 31 adjusting journal entry below for each situation. PREPAID ASSET AJE a) On November 22nd, the company paid $9,000 for insurance coverage and properly debited Prepaid Insurance on that payment date. The insurance purchased would begin providing coverage 8 days later - on December 1st - for the company, and provide coverage for the next 6 months (i.e.through May 31st). Date Account DR CR OFFICE SUPPLIES AJE b) The Office Supplies account had a $500 debit balance on January 1 of the current year. Office supplies of $250 were purchased during the year. The December 31 physical count showed $400 of supplies available. Date Account DR CR DEPRECIATION AJE c) The company purchased an automobile on January 1 for $24,000. The vehicle has an estimated life of 4 years and an estimated salvage value of $3,000. (Remember. As stated above, company does NOT make monthly AJES). Date Account DR CR Baby Steps Company makes AJES at year-end of December 31 only (i.e. no monthly AJES are made). Prepare the December 31 adjusting journal entry below for each situation. PREPAID ASSET AJE a) On November 22nd, the company paid $9,000 for insurance coverage and properly debited Prepaid Insurance on that payment date. The insurance purchased would begin providing coverage 8 days later - on December 1st - for the company, and provide coverage for the next 6 months (i.e.through May 31st). Date Account DR CR OFFICE SUPPLIES AJE b) The Office Supplies account had a $500 debit balance on January 1 of the current year. Office supplies of $250 were purchased during the year. The December 31 physical count showed $400 of supplies available. Date Account DR CR DEPRECIATION AJE c) The company purchased an automobile on January 1 for $24,000. The vehicle has an estimated life of 4 years and an estimated salvage value of $3,000. (Remember. As stated above, company does NOT make monthly AJES). Date Account DR CR