+ A' Read aloud Draw 4) Journalize the adjusting entries needed on December 31, 2015 end of the current accounting period. a) ABC Co. borrowed $100,000 on December 1, 2015 by signing a note that specifies interest at an annual percentage rate of 12%. b) ABC Co. purchased equipment on March 1 for $300,000. The useful life is expected to be 10 years c) ABC Co. had a note receivable of $25,000 signed on July 1. ABC will receive an annual interest of 5%. d) ABC Co. pays employees a weekly payroll of $10,000. December 31 falls on a Wednesday. (The work week is Monday through Friday) e) ABC Co. received $36,000 from XYZ Co. on May 1 for a building that it will rent for a period of three years. 1) The accountant questions the managers and discovers that sales revenues of S12.500 have been earned but the clients have not yet been paid. g) Details of prepaid insurance are shown in the account: Prepaid Insurance Bal. 1,000 Jan 1 Mar 31 2.600 July 7 800 Ar December 31. 1.000 is still prepaid