Adjusting Entries:

At December 31, 2020, Mr. Burns Good Old Fashion Cookies made the following adjusting entries.

A1.Mr. Burns recorded the depreciation for the fixed assets.The truck had 50,000 miles at December 31 and has an expected life of 3 years. Round to the nearest dollar.The other assets used double-declining balance. Use one entry for expense portion.

A2.75% of Mr. Burns Prepaid Rent Expired, 50% of Prepaid Ins Expired

A3. After Physical Inventory Conducted:Balance in plant supplies at year end: $900.Balance in office supplies at year end: $20,000

A4.Income Taxes accrued $70,000.This is to be paid March 15, 2021

A5.Office Salaries accrued $20,000.Wages accrued $15,000

A6.Mr. Burns uses the balance sheet approach to estimate how money he will lose in uncollectible accounts.Since the city of Springfield is in a serve recession, Mr. Smithers estimated for Mr. Burns that 8% of this year ending accounts receivable will be uncollectible.

A7. Two months of the patent have expired.

A8.Mr. Smithers discovered a sale on account earned by not yet recorded, $60,000.Since this amount was discovered after the estimate for uncollectible account, this amount WILL not be included in adjusting entry A6.There were no discount terms

A9.70% of the unearned sales revenue was earned in 2020

A10 Physical Inventory count results $448,000.The amount is considered immaterial and can be adjusted to Cost of Goods Sold