Adjusting and correcting journal entries as of 9-31-23 ( the fiscal year end)

Prepare the adjusting entries (excluding the income tax adjustment) on a separate sheet of paper.

If the company would have already recorded a transaction during the year do not record it again. Adjusting entries never involve cash.

2 Information about the company's accounting policies and unresolved issues: A. The Insurance Expense of $120,000 is for a one year insurance policy purchased on April 1, 2023. B. Employees are paid every Friday. August 31,2023 , is a Thursday. Weekly salaries total $10,000. C. Inventory is accounted for using the last in, first out method. 20,000 cases of organic, dehydrated backpacking meals were not in the physical inventory account because they were on consignment in various camping retailers. The cases have a cost of $60,000. Consignment transactions information: Another company has our inventory at their locations. Our company retains ownership. The other company tries to sell the inventory for us. When the inventory is sold the other company sends our company the cash. Inventory should be on the books of the company that owns the inventory. D. During fiscal 2023,70% of sales were credit sales and 30% of sales were for cash. Bad Debt Expense is 2% of credit sales. E. Depreciation on all depreciable assets is on the straight-line basis. F. A count of the Office Supplies on Hand at year end revealed that $12,000 were unused. The purchase was originally recorded in Administration Expense. G. The note payable has 4% interest. Only the interest is payable monthly and the principal of $400,000 is due October 1,2030. H. The Common Stock has a $5 par value and there are no treasury shares. 200,000 shares are authorized. A $30,000 dividend was declared and paid during the year. I. The income tax rate for all fiscal year ends since 83117 has been 20%. Happy Carrot Health Foods Inc. Balance Sheet 8-31-23 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Land Buildings Accumulated Depreciation - Buildings Equipment Accumulated Depreciation - Equipment Trade Name Total Assets Accounts Payable Income Taxes Payable 5% Notes Payable Common Stock - Par Paid in Capital in Excess of Par - Common Retained Earnings $140,000320,000(45,000)580,000550,0001,850,000(250,000)600,000(130,000)35,000 $$3,650,000 $485,00095,000400,000600,000500,0001,570,000 $3,650,000 Total Liabilities and Stockholders' Equity