Adjusting Entries Chart of Accounts G General Journal Instructions Ciapton Guitar Company enterea into the tolowing transactions auring 2016. ine transactions were properly recoraea in permanent (Daiance sneet) accounts uniess otnerwise indicatea. Date Transaction Purchased $480 of office supplies. Rented a warehouse from Hendrix Company, paying 1 year's rent of $3,600 in advance. Recorded the $3,600 payment as rent expense Borrowed $10,000 from the bank, signing a 1-year note at an annual interest rate of 12%. The bank insisted on collecting the interest in advance, so it withheld the interest amount from the funds disbursed to Clapton. The company recorded the transaction as a debit to Cash, $8,800, a debit to Interest Expense, $1,200, and a credit to Notes Payable, $10,000 Purchased office equprnert for $15,000, paying $3.000 down and signing a 2-year, 12% (annual rate) note payable for the balance. The office equipment is expected to have a useful life of 10 years and a residual value of $1,500. Straight-line depreciation is appropriate. Purchased a 3-year comprehensive insurance policy for $720 Sold land for $9,000. The purchaser made a $2,000 down payment and signed a 1-year, 10% note for the balance. The interest and principal will be collected on the maturity date. Rented a portion of the retail floor space to Harrison Inc. for $120 per month, collecting 8 months' rent in advance. Recorded the $960 receipt as rent revenue. Issued checks to sales personnel totaling $900. The checks are advances for expected travel costs during the remainder of the year Jan. 25 Feb. 1 Mar. 1 May 1 May 31 Aug. 1 Oct. 1 Nov. 13