1) Pokah K. Roberts (So owner) of Gemini Jewelry which has a fiscal year ended December 31, 2022. Gemini Jewelry purchase a one-year insurance policy on June 1, 2022 for $1,800 cash.
Required: Record the entry for the purchase of insurance and for the year-end adjustment. Post you entry to individual T- Account.
2) {Accreud Expenses –Interest}; On May 1, 2022, Gemini Jewelry borrows $10,000 from the bank and signs a note payable. The debt carries annual interest of 10% and is repaid in full (with interest) on July 31, 2023. Required: Record the journal entry for the initial borrowing, the year-end adjustment and the repayment of the debt. Post you entry to individual T- Account.
3) {Accrued Expenses –Interest}; As at December 31, 2022, Gemini Jewelry had provided 3 months of consulting service to a client at a rate of $1,000 per month, but had not yet billed the client or collected any money. January 31, 2023 the client was billed for four months of the service and paid one week later on February 8, 2023. Required: Record the journal entry for the year-end adjustment and any other entries required.
4) {Unearned Revenues}; A client prepaid Gemini Jewelry on November 1, 2022 for 5 months of consulting service (from November through the end of March). The client company pays $15,000. Gemini Jewelry earns the money evenly over the life of the project and has fulfilled its obligations up to December 31, Required: Record the journal entry November 1, 2022 and the year-end adjustment. Post you entry to individual T- Account.
5) {Depreciation}; Gemini Jewelry purchased a vehicle on August 31, 2022 for $15,000 cash. The vehicle is expected to be useful for 10-years after which time it will have no residual value. The company wishes to use straight line depreciation. Required: Record the journal entry for the vehicle and for the year end adjustment. Post you entry to individual T- Account.
