33. During Year 1, JR Company completed the transactions listedbelow. JR's fiscal year ends on December 31. Prepare journalentries to record each of the transactions. Note that the adjustingentries required on December 31 will be prepared in the followingequation (so don't include the end-of-year adjusting entries here).20 points
A. On January 1, owners invested $10,000 in the business inexchange for 10,000 shares of common stock with a par value of$0.01 per share.
B. On April 1, the company purchased equipment for $12,000. Theypaid half in cash and agreed to pay the rest in one year.
C. On July, the company received a loan of $20,000, due in 1year, with an annual interest rate of 10%.
D. On October 20, a customer made an advance deposit of $1,500for services to be provided later
E. On November 1, the company paid $3,000 for a 3 year insurancepolicy
34. Using the necessary information from the prior question,prepare the adjusting entries for JR company required on December31, Year 1. 20 points
F. The company uses the straight-line depreciation method. Itestimated that the equipment in transaction B will have a salvagevalue of $1,000 and a useful life of 5 years. With respect toequipment, provide the adjusting entry required at the end of Year1.
G. With respect to the loan in transaction C, provide theadjusting entry required at the end of Year 1.
H. Services worth $500 have been provided to the customer intransaction D. provide the adjusting entry required at the end ofYear 1.
I. With respect to the insurance policy in transaction E,provide the adjusting entry required at the end of Year 1.
33. During Year 1, JR Company completed the transactions listedbelow. JR's fiscal year ends on December 31. Prepare journalentries to record each of the transactions. Note that the adjustingentries required on December 31 will be prepared in the followingequation (so don't include the end-of-year adjusting entries here).20 points
A. On January 1, owners invested $10,000 in the business inexchange for 10,000 shares of common stock with a par value of$0.01 per share.
B. On April 1, the company purchased equipment for $12,000. Theypaid half in cash and agreed to pay the rest in one year.
C. On July, the company received a loan of $20,000, due in 1year, with an annual interest rate of 10%.
D. On October 20, a customer made an advance deposit of $1,500for services to be provided later
E. On November 1, the company paid $3,000 for a 3 year insurancepolicy
34. Using the necessary information from the prior question,prepare the adjusting entries for JR company required on December31, Year 1. 20 points
F. The company uses the straight-line depreciation method. Itestimated that the equipment in transaction B will have a salvagevalue of $1,000 and a useful life of 5 years. With respect toequipment, provide the adjusting entry required at the end of Year1.
G. With respect to the loan in transaction C, provide theadjusting entry required at the end of Year 1.
H. Services worth $500 have been provided to the customer intransaction D. provide the adjusting entry required at the end ofYear 1.
I. With respect to the insurance policy in transaction E,provide the adjusting entry required at the end of Year 1.
