2. Present a list of adjusting entries that must be effected as of December 31. 2007.

The followng, among others, are items for adjustment:

a. merchandise inventory counted and properly costed at 44,100

b. Inventory of unused office supplies, 126.

C. The prepaid rent was for the months of December 2007, and January, 2008.

E. Accrued Utility Expenses- 457.60

No Seryice :11 PM Journal Entry will be as follows office Equipment E Nevalita, Capita 3 Dec Miscellaneous Expense 13 14 15 16 17 ax and Licences -Dec Miscellaneous 19 21 5-Dec Purchases Accounts Payable 23 24 25 26 27 8-Dec Purchases 370. Purchase Returns 30 31 32 10-Dec Advertising Expense 13-Dec Accounts Receivable 36 37 14-Dec Account Payable 42 43 16-Dec Office Equipment 45 22-Dec Cash 22-Dec Cash Accounts Receivables 51 53 29-Dec Cash 57 59 1-DecE.Navalta, Withdrawal 61 62