23. Record the proper adjusting entry. Do not record the original entry for the transaction; just record the adjustment required at the end of the fiscal period. The fiscal period is one year from 1/1 to 12/31. It may help you to prepare the original entry to better identify the proper adjusting entry. Be aware of the date of the transactions. Reminder: Cash is NEVER used in adjusting entries and there is ALWAYS one account from the Balance Sheet and one account from the Income Statement used in adjusting entries.

23. Record the proper adjusting entry. Do not record the original entry for the transaction; just record the adjustment required at the end of the fiscal period. The fiscal period is one year from 1/1 to 12/31. It may help you to prepare the original entry to better identify the proper adjusting entry. Be aware of the date of the transactions. Reminder: Cash is NEVER used in adjusting entries and there is ALWAYS one account from the Balance Sheet and one account from the Income Statement used in adjusting entries. a. On 11/1, your business purchased a one-year insurance policy for $3600. b. On 6/1, your business borrowed $300,000 from the Olivos Loan Sharking Financial Services Corporation. The note will be repaid in one year. The interest rate is 9.5%. c. On 6/14 your business bought Supplies for $9000. On 12/31, there were $4000 of Supplies on hand. d. On 7/1 your business purchased a Truck for $90,000. The salvage value is $5,000 and the useful life is expected to be 7 years. c. There is a balance in the Unearned Service Revenue account of $34,000. Of this amount, 40% of it has now been earned as of the end of the year. f. As of 12/31, you owe your employees $7,000 in wages. g. After preparing an Aging Schedule, it is estimated that $15,000 of the total Accounts Receivable balance will NOT be collected. There is a current balance in the Allowance for Doubtful Accounts of $3,000. h. After evaluating the balance in the Goodwill account, it was determined that the company should record an Impairment of $50,000 on Goodwill