5	From the following information prepare adjusting entries in the general journal and
	enter them in the work sheet.
	a	The annual provison for doubtful accounts receivable is recorded by
		providing a charge to Bad Debt Expense in an amount equal to 2.2% of net
		credit sale. All cash sales were executed in December.
	b	An inventory count of the office supplies revealed $850 of supplies on hand
		at year end.
	c	The prepaid insurance on January 1, 2014 was $3,220, which covers the period
		January 1 through August 31, 2014. The insurance premium of $7,800 recorded
		in August covers the period of September 1, 2014 through August 31, 2015.
		Rockford estimates that 60% of the premiums are attributable to general
		activities (Use Insurance Expense) and 25% to selling activities. (Use
		Miscellaneous Expense).
	d	The payroll summary for the employees who are paid biweekly shows the
		following information at December 31, 2014:
		Delivery and Warehouse Wages				$6,100
		FICA Taxes Payable				430
		Federal Withholding Taxes				1,036
		State Withholding Taxes				218
			Net pay			4,416	(will pay in 2015)
	e	The employer's share of the FICA tax ($430) must be accrued; no state or
		federal unemployment tax is incurred during the fourth quarter because all
		wages and salries earned during the last quarter exceed the manimum
		subject to unemployment tax.
	f	Interest has accrued at 7% on the long-term notes payable since July 1,2014.
		These interests are due on January 1, 2015 (The first six-month interests have
		been recorded and paid in July).
		Interest on bonds is accrued and paid semi-annually, at a 4% annual coupon rate.
		The next interest payment is due on January 1, 2015. The bonds are dated
		January 1, 2008, and mature January 1, 2018. Market interest rate was 6%
		at issurance . Use effective interest amortization method.
	g	The interest accrued to 12/31/14 on notes receivable is composed of the
		following:
		Platteville Plumbers, 10%, 6 months, due March 31, 2015						$1,325
		Bilder Construction, 11%, 6 months, due June 14, 2015						232
		Beverly's Building, 9%, 6 months, due June 26, 2015						17
								$1,574
		The interst accrued at 12/31/14 on the note payable (current) of $15,000 is
		$1,200. Interest is payable on January 2, 2015. (The note is due in 2015)
	h	A warehouse lease payment of $9,600 was made on Septermber 1, 2014,
		for rental through February 28, 2015. (The Prepaid Rent account is for
		advance lease payments on the warehouse.)
	i	$730 is owned to Northern Electric Co. and $279 is owned to City of Rockford
		for utility services proved during December 2014.
	j	Plant and equipmentto be depreciated are composed of the following:
		Assets	Date Acquired	cost	estimated usage or life	salvage value	depreciation method
		Building	7/1/2010	$306,000	25 years	$20,000	sum-of-years' digits
		Truck #1	4/1/2010	28,000	60,000 miles	3,100	miles driven
		Truck #2	9/1/2011	33,000	60,000 miles	4,200	miles driven
		Lift Truck #1*	8/17/2007	7,900	10 years	900	straight-line
		Lift Truck #2	3/29/2011	4,500	10 years	500	straight-line
		Lift Truck #3	9/16/2012	5,000	10 years	500	straight-line
		Office Equipment	Prior to 1/1/14	32,800	7 years	2,000	straight-line
		Computer	12/19/2014	6,100	4 years	1,300	Double-decling
		*	sold 12/31/14
		Truck No. 1has been driven 45,000 miles prior to 1/1/14 and truck No. 2 has
		been driven 30,500 miles prior to 1/1/14. During 2014 truck No. 1 was driven
		13,000 miles and truck No. 2 was driven 17,000 miles. Remember that Rockford
		Company takes a half-year's depreciation in the year of acquisition and a half-
		year in the year of sale.