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ACC 124 Principles of Accounting Ch 5 Adjusting JEs FastForward Company AJE Scenarios Name Date Use the 3-step process to create adjusting journal entries: 1. Look at the current Unadjusted T/B account balance (see worksheet for account balances) 2. Determine how much the account balance should be adjusted. Dates are important cons 3. Record the adjusting journal entry. iderations. Fast Forward Co. closes their accounting period every 6 months on Jun 30 and Dec 31. Record the following AJES for 12/31. 1 FastForward paid for 12 months of rent in advance. Record the AJE for the amount of rent used as of 12/31. 2. FastForward previously paid for 24 months of insurance. Insurance benefits began on Dec1 Record the amount of insurance used as of 12/31. 3. On 12/31 a physical inventory count revealed $8,670 of supplies were left on hand. Record the appropriate AJE on 12/31 4. Furniture was previously purchased and recorded on 10/1. Salvage value is estimated at $8,000 and expected life is 4 years. Record the AJE on 12/31. 5. The company work week is Monday thru Friday, and there is one employee whom earns $70 per day. Wages are paid every week on the last day of the work week. The last pay day was Friday Dec 26. Record the AJE on 12/31 to accrue wages Hint: Draw a timeline with dates and days of the week to determine how much wages to accrue

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