1. Adjusting Entries

Below please find the unadjusted trial balance

Williams Corporation
Unadjusted Trial Balance
As of the year ended May 31, 2020
Cash	33,845
Accounts Receivable	88,000
Allowance for Doubtful Accounts	300
Prepaid Rent
Prepaid Insurance	21,940
Equipment	950,333
Accumulated Depreciation		215,000
Patent	45,000
Accounts Payable		73,000
Short Term Notes Payable		65,000
Salaries Payable
Interest Payable
Unearned Fee Revenue		40,000
Unearned Service Revenue		8,000
Bonds Payable		300,000
Discount on Bonds Payable	28,782
Common Stock		100,000
Retained Earnings		185,000
Fee Revenue		545,000
Service Revenue		289,000
Salaries Expense	452,000
Depreciation Expense
Amortization Expense
Bad Debt Expense
Rent Expense	48,000
Insurance Expense
Other Operating Expenses	129,000
Interest Expense	22,800
	1,820,000	1,820,000

Using this trial balance and the additional information below, prepare the necessary adjusting entries.

1. Williams paid 8 months rent in the amount of $24,000 on February 1^st. They had normally paid the first of each month. (2)

2. Williams always makes certain that they have adequate insurance. They currently have two policies which are renewed every time the policy matures. (3)

Policy 1 is an annual policy which runs from January 1^st to December 31^st. The premium was $9,000 .

Policy 2 was last paid on April 1^st and covers a six-month period. The premium was $3,000.

3. On April 12^th the company signed a 90 day Note payable in the amount of $65,000. The note bears interest at 6%. (3)

4. Several years ago the company issued a $300,000, 5% bon The Bond pays interest semi-annually each January 1 and July 1^st. The bonds were sold at a discount. An amortization schedule follows: (3)

Date	Cash	Interest	Amortization	Carrying Value
7/1/2019	7,500	8,100	600	270,600
1/1/2020	7,500	8,118	618	271,217
7/1/2021	7,500	8,136	637	271,854

5. Salaries of $3,678 have been earned but remain unpaid.(2)

6. One customer prepaid for services on April 1^st. He prepaid for 4 months at $2,000 per month. (2)

7. 55% of the Unearned Fee Revenue had been earned by the end of the period. (2)

8. The Patent had a remaining useful life of 5 years and a legal life of 9 years at the beginning of the year. (2)

1. The equipment has a useful life on 10 years, a salvage value of $100,000. The Company uses the DDB method of Depreciation.(2)

10. Bad Debts are estimated to be 3% of Accounts Receivable.(3)