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1. On September 1, 2015, DEF Company borrowed 1.

On September 1, 2015, DEF Company borrowed


2,000,000 cash from EFG Company by issuing a 2,000,000 cash from EFG Company by issuing a
6% note payable in one year. The interest is 6% note payable in one year. The interest is
payable upon maturing of the note. payable upon maturing of the note.

2. On December 1, 2014, ABC Company paid 2. On December 1, 2014, ABC Company paid
insurance premium of 72,000 covering a period insurance premium of 72,000 covering a period
of three years beginning on this date. of three years beginning on this date.

3. XYZ Company has a 1,500,000 account 3. XYZ Company has a 1,500,000 account
receivable in December 31, 2015 and Allowance receivable in December 31, 2015 and Allowance
for Bad Debt has a beginning balance of 10,000. for Bad Debt has a beginning balance of 10,000.
5% of accounts is uncollectible. 5% of accounts is uncollectible.

4. JKL Company pays all employees every Friday. 4. JKL Company pays all employees every Friday.
The total payroll for the 5 day workweek ending The total payroll for the 5 day workweek ending
January 3, 2016 is 450,000. January 3, 2016 is 450,000.

Requirements: Prepare Journal Entries and Adjusting Requirements: Prepare Journal Entries and Adjusting
Entries. Entries.

1. On September 1, 2015, DEF Company borrowed 1. On September 1, 2015, DEF Company borrowed
2,000,000 cash from EFG Company by issuing a 2,000,000 cash from EFG Company by issuing a
6% note payable in one year. The interest is 6% note payable in one year. The interest is
payable upon maturing of the note. payable upon maturing of the note.

2. On December 1, 2014, ABC Company paid 2. On December 1, 2014, ABC Company paid
insurance premium of 72,000 covering a period insurance premium of 72,000 covering a period
of three years beginning on this date. of three years beginning on this date.

3. XYZ Company has a 1,500,000 account 3. XYZ Company has a 1,500,000 account
receivable in December 31, 2015 and Allowance receivable in December 31, 2015 and Allowance
for Bad Debt has a beginning balance of 10,000. for Bad Debt has a beginning balance of 10,000.
5% of accounts is uncollectible. 5% of accounts is uncollectible.

4. JKL Company pays all employees every Friday. 4. JKL Company pays all employees every Friday.
The total payroll for the 5 day workweek ending The total payroll for the 5 day workweek ending
January 3, 2016 is 450,000. January 3, 2016 is 450,000.

Requirements: Prepare Journal Entries and Adjusting Requirements: Prepare Journal Entries and Adjusting
Entries. Entries.

1. On September 1, 2015, DEF Company borrowed 1. On September 1, 2015, DEF Company borrowed
2,000,000 cash from EFG Company by issuing a 2,000,000 cash from EFG Company by issuing a
6% note payable in one year. The interest is 6% note payable in one year. The interest is
payable upon maturing of the note. payable upon maturing of the note.

2. On December 1, 2014, ABC Company paid 2. On December 1, 2014, ABC Company paid
insurance premium of 72,000 covering a period insurance premium of 72,000 covering a period
of three years beginning on this date. of three years beginning on this date.

3. XYZ Company has a 1,500,000 account 3. XYZ Company has a 1,500,000 account
receivable in December 31, 2015 and Allowance receivable in December 31, 2015 and Allowance
for Bad Debt has a beginning balance of 10,000. for Bad Debt has a beginning balance of 10,000.
5% of accounts is uncollectible. 5% of accounts is uncollectible.

4. JKL Company pays all employees every Friday. 4. JKL Company pays all employees every Friday.
The total payroll for the 5 day workweek ending The total payroll for the 5 day workweek ending
January 3, 2016 is 450,000. January 3, 2016 is 450,000.

Requirements: Prepare Journal Entries and Adjusting Requirements: Prepare Journal Entries and Adjusting
Entries. Entries.