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Prepare the necessary adjusting entries at December 31, 2013, for the Jasper Company for each...

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Accounting

Prepare the necessary adjusting entries at December 31, 2013, for the Jasper Company for each of the following situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.

1. A two-year fire insurance policy was purchased on August 1, 2013, for $12,000. The company debited prepaid insurance for the entire amount.

2. Depreciation on equipment totaled $20,000 for the year.

3. Employee salaries of $27,000 for the month of December will be paid in early January 2014.

4. On October 1, 2013, the company lent $50,000 to a customer. The customer signed a note that requires principal and interest at 8% to be paid on September 30, 2014.

5. In July, the company purchased supplies for $4,500. The entry was recorded as a debit to supplies expense. Supplies on hand at the end of the year totaled $2,200. No supplies had been previously purchased.

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