Adjusting entries
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(1) The employees accrued vacation pay at the end of the year was $11,880.
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(2) Record depreciation on the equipment purchased on February 1, using the straight-line method. The equipment has an estimated 9-year useful life and an estimated residual value of $2,760.
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(3) Record insurance expired on the policy purchased March 31.
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(4) Record the adjusting entry for the interest accrued and the amortization of the premium on the bonds payable since the last interest payment. (round the amount to the nearest dollar)
Vacation Pay Payable 11,880 Legal & Acctg Expense 18,000 Common Stock 25,000 40,000 2,208 48,000 Cash 275,000 406,000 926,896 10,750 40,000 6,660 500,000 335,000 Retained Earnings 27,600 90,000 190 35,622 26,588 11,880 18,000 15,000 36,600 38,500 185,400 35,000 35,622 1,860 1,204,600 Interest Payable 5,833 Medical Ins. Expense 32,000 115,208 Treasury Stock 38,500 9,460 8,140 5,833 32,000 20,900 PIC - Common Stock 250,000 312,000 25,392 77,000 664,392 Notes Payable 180,000 180,000 1,160 40,000 Miscellaneous Expense 8,400 947,724 Fees Eamed 1,975,000 8,400 38,840 Accounts Receivable 1,475,000 1,975,000 Rent Expense 170,000 Common Dividend Payable 22,662 22,662 Preferred Stock 174,000 15,000 189,000 1,475,000 Advertising Expense 140,000 170,000 140,000 Prepaid Insurance 36,600 Salary Expense 760,000 Preferred Dividend Payable 12,960 12,960 PIC - Preferred Stock 232,000 105,000 337,000 Commission Expense 63,000 36,600 760,000 Land 63,000 PIC - Treasury Stock 1,290 1,290 Utilities Expense 13,200 352,000 Bonds Payable 1,000,000 Depreciation Expense 19,580 352,000 13,200 1,000,000 19,580 | Stock Div. Distributable 2,208 2,208 Vacation Pay Expense 11,880 Equipment 195,000 Bond Discount 73,104 4,569 Insurance Expense 6,595 11,880 195,000 68,535 6,595 Accum. Depreciation 19,580 Interest Expense 5,400 39,569 700 45,669 19,580 Record the adjusting entries in the journal after the journal entries you recorded in step #2. Skip a line after the last entry and write "Adjusting Entries in the middle of the account column then journalize the adjusting entries. You do not need an explanation, but skip a line between entries. All the adjusting entries should be dated December 31. Post the adjusting en tries to the T-Accounts in Excel. Step 6. Prepare an Adjusted Trial Balance Click on the Adjusted Trial Balance tab and prepare the Adjusted Trial Balance. The total of the Adjusted Trial Balance should be $4,383,321. If your balance does not agree, make any necessary corrections before you proceed. Vacation Pay Payable 11,880 Legal & Acctg Expense 18,000 Common Stock 25,000 40,000 2,208 48,000 Cash 275,000 406,000 926,896 10,750 40,000 6,660 500,000 335,000 Retained Earnings 27,600 90,000 190 35,622 26,588 11,880 18,000 15,000 36,600 38,500 185,400 35,000 35,622 1,860 1,204,600 Interest Payable 5,833 Medical Ins. Expense 32,000 115,208 Treasury Stock 38,500 9,460 8,140 5,833 32,000 20,900 PIC - Common Stock 250,000 312,000 25,392 77,000 664,392 Notes Payable 180,000 180,000 1,160 40,000 Miscellaneous Expense 8,400 947,724 Fees Eamed 1,975,000 8,400 38,840 Accounts Receivable 1,475,000 1,975,000 Rent Expense 170,000 Common Dividend Payable 22,662 22,662 Preferred Stock 174,000 15,000 189,000 1,475,000 Advertising Expense 140,000 170,000 140,000 Prepaid Insurance 36,600 Salary Expense 760,000 Preferred Dividend Payable 12,960 12,960 PIC - Preferred Stock 232,000 105,000 337,000 Commission Expense 63,000 36,600 760,000 Land 63,000 PIC - Treasury Stock 1,290 1,290 Utilities Expense 13,200 352,000 Bonds Payable 1,000,000 Depreciation Expense 19,580 352,000 13,200 1,000,000 19,580 | Stock Div. Distributable 2,208 2,208 Vacation Pay Expense 11,880 Equipment 195,000 Bond Discount 73,104 4,569 Insurance Expense 6,595 11,880 195,000 68,535 6,595 Accum. Depreciation 19,580 Interest Expense 5,400 39,569 700 45,669 19,580 Record the adjusting entries in the journal after the journal entries you recorded in step #2. Skip a line after the last entry and write "Adjusting Entries in the middle of the account column then journalize the adjusting entries. You do not need an explanation, but skip a line between entries. All the adjusting entries should be dated December 31. Post the adjusting en tries to the T-Accounts in Excel. Step 6. Prepare an Adjusted Trial Balance Click on the Adjusted Trial Balance tab and prepare the Adjusted Trial Balance. The total of the Adjusted Trial Balance should be $4,383,321. If your balance does not agree, make any necessary corrections before you proceed
