Adjusting Entries

Debit Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Supplies Equipment 2,200 19,200 Accumulated Amortization - Equipment Truck Accumulated Amortization - Truck Accumulated Amortiza Current Portion of Long Term Debt 1,100 Note Payable R. Alfons, Capital 800 8,500 7,600 45,000 Construction Revenue Material Purchases Wages Expense Advertising Expense Automobile Expense Bank Charges Warehouse Rent 17,600 Telephone Additional information: 1. The payroll for Friday January 2, 2015 is $1,500. Wages are paid each Friday for a five day work week. 2. The insurance premium was prepaid on July 1, 2014 and covered the period from July 1, 2014 to June 30 , 2015. 3. The equipment is amortized using the straight-line method assuming a five year useful life and no residual value. The equipment was purchased July 1, 2014. 4. The note payable is a small business loan from the Federal Business Development Bank borrowed on August 1 , 2014. The note is to be paid back beginning August 1, 2015 and has an interest rate of 6% per annum. Interest is payable July 31 and January 31. 5. The following invoices were received during January 2015 and related to the 2014 fiscal year. Telephone bill for December $100. Warehouse rent for November 1 to January 31$300. 6. Employee Health Tax is 0.98% of the total wages expense for 2014 , It will be paid by CiS on January 31,2015 . 7. $4,500 was paid as a deposit on a $10,000 contract. It was incorrectly included as revenue at that time. CIS has completed 25% of the job as of December 31 . (Hint Construction Revenue is too high and needs to be adjusted) 8. An estimated 2.5% of accounts receivable are estimated to be uncollectible. 9. A count of supplies on hand as of December 31 totaled $3,100. 10. The truck is amortized using the declining-balance method assuming a residual walue of $3,000 and an amortization rate of 25%. The equipment was purchased July 1, 2014. Debit Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Supplies Equipment 2,200 19,200 Accumulated Amortization - Equipment Truck Accumulated Amortization - Truck Accumulated Amortiza Current Portion of Long Term Debt 1,100 Note Payable R. Alfons, Capital 800 8,500 7,600 45,000 Construction Revenue Material Purchases Wages Expense Advertising Expense Automobile Expense Bank Charges Warehouse Rent 17,600 Telephone Additional information: 1. The payroll for Friday January 2, 2015 is $1,500. Wages are paid each Friday for a five day work week. 2. The insurance premium was prepaid on July 1, 2014 and covered the period from July 1, 2014 to June 30 , 2015. 3. The equipment is amortized using the straight-line method assuming a five year useful life and no residual value. The equipment was purchased July 1, 2014. 4. The note payable is a small business loan from the Federal Business Development Bank borrowed on August 1 , 2014. The note is to be paid back beginning August 1, 2015 and has an interest rate of 6% per annum. Interest is payable July 31 and January 31. 5. The following invoices were received during January 2015 and related to the 2014 fiscal year. Telephone bill for December $100. Warehouse rent for November 1 to January 31$300. 6. Employee Health Tax is 0.98% of the total wages expense for 2014 , It will be paid by CiS on January 31,2015 . 7. $4,500 was paid as a deposit on a $10,000 contract. It was incorrectly included as revenue at that time. CIS has completed 25% of the job as of December 31 . (Hint Construction Revenue is too high and needs to be adjusted) 8. An estimated 2.5% of accounts receivable are estimated to be uncollectible. 9. A count of supplies on hand as of December 31 totaled $3,100. 10. The truck is amortized using the declining-balance method assuming a residual walue of $3,000 and an amortization rate of 25%. The equipment was purchased July 1, 2014