Adjusting Entries

You are presented with the following information for Little Co. Consider all situations independently. The company has a 12/31 year end and each item should be considered as a possible adjusting entry. Please present each adjusting entry as you deem necessary in good form followed by a brief explanation.

A13: The company has been involved in lawsuit. You reviewed the legal file and the letter received from your attorney stating that is was not likely that you would lose the suit but that if you did, the judgment would be approximately $30,000.