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Problem 1: Aloha Painting Company has reached the end of its first fiscal year, November 30, 2020. Prepare any ADJUSTING JOURNAL ENTRIES required for Aloha Painting Co. at November 30, 2020. Assume that all original transaction entries were recorded and posted correctly. Omit explanations and do not prepare the original journal entries.
a) On February 1, 2020, Aloha Painting purchased a one year insurance policy and debited Prepaid Insurance. This policy covers the fiscal year from February 1, 2020 to January 31, 2021 and had cost $1,440.
b) On March 1, 2020, Aloha Painting agreed to allow another company (DC Painting) to store equipment and paint in Aloha's facility for $200 per month. (Aloha credits the Storage Fees account whenever such revenue is earned). A six month prepayment was paid upon signing of the agreement, but DC will not have to make the next payment until the first anniversary date of the agreement, at which time they will pay any outstanding storage fees to bring their account up to date.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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