Chapter 3 - 4 Review.xlsx - Adjusting Journal Entries 1 Company borrows $1,000 on September 1 Interest rate is 12 No interest or principal payments have

Chapter 3 - 4 Review.xlsx - Adjusting Journal Entries 1...

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Adjusting Journal Entries 1. Company borrows $1,000 on September 1Interest rate is 12%No interest or principal payments have been made since the $1,000 was borrowedWhat is the journal entry on September 1? 2. Company pays $6,000 of rent in advance on November 30.The rent payment covers 6 months of rent starting on December 1.What is the journal entry on November 30? 3. Company buys $25,000 of inventory on December 1 ON CREDIT.On December 16, the Company makes the $25,000 payment.On December 31, the Company counts its inventory and finds that $3,000 remains.What is the journal entry on December 1? 4. Consulting Company finishes a project for a customer on December 20.Price for the project is $1 million.The Company does not bill the project until January 10 of the following year.The Company receives payment on January 25.What adjusting journal entry would the company make at December 31? 5. The Company's employees work from December 16 - December 31. The employees earn $25,000 for that period.
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