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Problem 6 15 points

Prepare the adjusting journal entries needed (if any) on December 31, 2015.
AJE's are only prepared at year end (December 31). 15 points
On May 31, 2015, the company paid a one-year premium of $6,000 on an
insurance policy that is effective May 1, 2015, and expires May 1, 2016.
The company received $12,000 on April 30, 2015, in return for which the
company agreed to provide consulting services for 12 months beginning immediately.
Employee wages for the prior month are paid on the 15th day of the current month.
The monthly payroll (ignoring payroll taxes) is $50,000.
On June 15, the company purchased $2,800 of supplies for cash. On
September 1, the company made another cash purchase of $1,200. As of
December 31, the company accountant determined that $1,500 of supplies
were remained at year-end.
The company received a note from a customer on February 1, 2015, as
payment for services. The amount of the note is $1,000 with interest at 3%.
The note and interest will be paid on January 31, 2017.

Problem 7 15 points

Presented here are selected transactions for the Stevens Company during April. Stevens uses the perpetual inventory system. Prepare the necessary journal entries.

April 1 Sold merchandise to Jagr Company for $28,000, terms 2/10,n/30. The merchandise sold had a cost of $15,000.

4 Purchased merchandise from Crosby Company for $35,000, terms 2/10, n/30.

6 Received payment from Jagr Company for purchase of April 1.

8 Returned merchandise to Crosby Company costing $5,000.

10 Paid Crosby Company for April 4 purchase.

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