39. Account balances and supplemental information for the Bighorn Corporation as of December 30, 2016 are given below: 20 points Before Adjustment 75,900 140,000 84,000 300,000 240,000 1,560,000 6,500 debit balance Accounts Payable Accounts Receivable Accumulated Depreciation--Equipment Bonds Payable Cash Common Stock Allowance for Doubtful Accounts Interest Payable Equipment Inventory Investment in Land Interest Receivable Note Payable-long term Notes Receivable Prepaid Insurance Retained Earnings Paid In Capital Other Revenues and Revenue 840,000 395,100 510,000 120,000 150,000 7,200 Required: 1. Record the 7 adjusting entries to reflect the following transactions that occurred during 2016 (a) $300,000 of 12% bonds were sold on November 1, 2016, at par value so there is two months accrued interest expense on 12/31/16 (b) 40,000 shares of S30 par value common stock were sold for S1,560,000. The entire amount of S39.00 per share including the amount that should have been credited to Paid In Capital (PIC) was credited to Common Stock. This represents a $9.00 PIC for 40,000 shares of Common Stock and you need to correct the entry (c) All the equipment was purchased on January 2, 2016. The depreciation rate is 10 percent per year so the controller wants to record depreciation expense for 2016 (d) 5 percent of the 12/31/16 accounts receivable are expected to be uncollectible so you need to increase or decrease the $6,500 allowance account. (e) A two-year insurance policy was purchased on May 1,2016, for $7,200. You need to record the insurance expense for 8 months earned in 2016 (f) There is accrued interest revenue on S150,000 of short-term notes receivable from customers of $5,100 at December 31,2016 (g) $120,000 was borrowed from the bank on a 5-year, 10% note payable dated July 1, 2012. The loan is to be repaid in ten semiannual payments of $12,000 plus interest, with the first payment due June 30, 2017. There is 6 months interest accrued