1. Using the T accounts provided, record the unadjusted beginning balances.

A. Supplies on hand at year-end are $1,200.

B. Six months of rent ($24,000) was paid in advanced on September 1st. No rent expense has been recorded since that date.

C. Depreciation expense has not been recorded on the building for 2018. The building has a useful life of 20 years. Bust-a-Move Snowboard uses straight-line depreciation for all asset classifications.

D. Depreciation expense has not been recorded for the equipment for 2018. The equipment has a useful life of 10 years and a salvage value of $5,000.

E. Employees work Monday through Friday. The weekly payroll is $7,500 and is paid every Friday. December 31st is a Wednesday.

F. Revenue of $24,000 must be accrued (Note: The earnings process is complete but the amount has not been received from customer.)

G. Smugglers' Notch (a customer) paid $36,000 in advance on September 1, 2018 for services to be provided evenly from October 1, 2018 through March 31, 2019. None of the revenue has yet been recorded. H. Management has been made aware that $5,000 of the current accounts receivable is deemed uncollectible. Management has asked that this amount be written off immediately.

I. 1,000 snowboard helmets in the amount of $25,000 were ordered on December 15th and were shipped fob shipping point on December 21st. To date the inventory has not been received. The invoice has not yet been received.

J. On December 31st, Management decides to sell one piece of equipment with a historical cost of $15,000, and accumulated depreciation of $3,000. At the end of its useful life this equipment was previously deemed to have no salvage value. Cash proceeds on this sale were $10,000.

Transaction has not been recorded.