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11 On January 21st, Mason Al Month End Adjusting Entries There are 10 applicable adjusting entries that need to be made as of the end of the month based on the information provided above. When recording these adjusting entries consider the following facts: 1. Interest expense will be recorded as an operating expense item on the income statement. 2. Record the necessary adjusting entries related to pre-paid expense as separate journal entries. When reviewing the supply room as of the end of the month, Mason Automation noted that it had $4.6 3. Million worth of supplies still on hand. As of the end of the month, 3,500 cars were completed for Highland Inc. and the performance obligation had been met on those 3,500 cars. As such, revenue was determined to be earned on those 3,500 vehicles and it was noted that each vehicle costed $5,000 to manufacture. (These journal entries are 32 .considered 2 of the 10 total adjusting entries). Mason Automation uses the balance sheet approach in estimating the allowance for doubtful accounts as of the end of the period. Based on industry average, Mason noted that it will use 7.5% of receivables as 33 . an estimation. 34 6. There should be two separate entries related to payroll that is recorded. 35 36 Note on Balance Sheet: 37 When preparing the balance sheet, close out net income to retained earnings. 38 39 40 + 41 42 43 44 45 46 47 48 49Credit Account JE# Debit Account Debit Amount (S) Credit Amount (S) Adjusting Entries ADJI ADJ2 ADJ3 ADJ4 ADJS 104 ADJ6 105 106 107 108 109 110 111 ADJ7 112 113 114 115 116 117 ADJ8 118 119 120 121 122 123 124 ADJ9 125 126 127 128 129 130 ADJ10 131 132 133 134 135 Information Journal Entries T-Accounts Trial Balance Income Statement Balance Sheet Calculation Mode: Automatic Workbook Statistics