The records of Horner Corp.show the following information:
(a)Purchased a three-year insurance policy for $10,800 on September 1, 2013, and recorded the premium payment in the asset account.
(b)Borrowed $60,000 on a 1-year, 12% note on August 1, 2013. Interest is payable at maturity.
(c)Collected $8,400 on September 1, 2013, to cover six months' rent paid in advance, and recorded the receipt in a revenue account.
(d)Machinery purchased on January 1, 2013, for $600,000 is to be depreciated over four years, with no salvage value at the end of this period.
Prepare journal entries to adjust the books of Horner Corp.at December 31, 2013.

Question

The records of Horner Corp.show the following information:
 (a)Purchased a three-year insurance policy for $10,800 on September 1, 2013, and recorded the premium payment in the asset account.
(b)Borrowed $60,000 on a 1-year, 12% note on August 1, 2013. Interest is payable at maturity.
(c)Collected $8,400 on September 1, 2013, to cover six months' rent paid in advance, and recorded the receipt in a revenue account.
(d)Machinery purchased on January 1, 2013, for $600,000 is to be depreciated over four years, with no salvage value at the end of this period. 
Prepare journal entries to adjust the books of Horner Corp.at December 31, 2013.

Quizplus · Accepted Answer

The Answer of The records of Horner Corp.show the following information:
 (a)Purchased a three-year insurance policy for $10,800 on September 1, 2013, and recorded the premium payment in the asset account.
(b)Borrowed $60,000 on a 1-year, 12% note on August 1, 2013. Interest is payable at maturity.
(c)Collected $8,400 on September 1, 2013, to cover six months' rent paid in advance, and recorded the receipt in a revenue account.
(d)Machinery purchased on January 1, 2013, for $600,000 is to be depreciated over four years, with no salvage value at the end of this period. 
Prepare journal entries to adjust the books of Horner Corp.at December 31, 2013.

The Records of Horner Corp.show the Following Information