11. Adjusting entries

Porter Company shows the following accounts in its partial unadjusted trial balance at December 31, 2021.

	Dr	Cr
Cash	$71,300
Accounts receivable	40,000
Trading securities	7,000
Available for sale securities	50,000
Allowance for Doubtful accounts	2,000
Furniture and Fixtures	181,000
Accumulated depreciation - F&F		14,000
Accounts Payable		10,800
Common Stock Retained Earnings		104,000 15,000
Service Revenue		324,100
Insurance expense	11,300
Salaries Expense	149,700
Rent Expense	15,600
TOTALS	$527.900	$ 52Z,9Q0
Additional Information

1. On May 1, 2021, the company paid $8,700 to renew its comprehensive insurance coverage for one year. The premium on the previous 1-year policy, which expired on April 30, 2021, was $7,800.

2. Bad debts are estimated at 10% of gross accounts receivable.

3. Depreciation is 10% of Furniture & Fixtures. No F&F were purchased or sold during the year.

4. The company received $12,000 on November 1, 2021 from a customer for 3 months' worth of services which will be provided by Porter in 2022. The company recorded the entire $12,000 in Service Revenue.

5. Employees are paid bi-weekly on Friday. December 31st fell on a Saturday. Employees average $2,000 for a five-day work week. All salaries were paid in full on Friday, December 23rd for the week ended December 23rd.