Adjusting Journal Entries The following UNADJUSTED account balances as of December 31, 2020 pertain to Milo Tindolini Inc. an internationally famous beauty salon: Debit Credit 15,000 2,625 185,000 5,250 Accrued salon fees receivable Accrued expenses payable Supplies Prepaid insurance Prepaid maintenance Patents Wages payable Interest payable Unearned rent Unearned salon revenue Note payable - Fuestal Capital Obligation under warranty Salon revenue Rental income Wages expense Interest expense Insurance expense Supplies expense Utilities expense Maintenance expense Warranty expense Amortization expense - Patents 300,000 12,30 2,370,000 750 269,500 46,200 33,600 14,375 15,300 11,800 20,350 B a. b. c. d. e. D On November 1, 2020 Milo renewed various 6-month insurance policies which expire on April 30, 2021. The total amount paid to renew these was $18,000. Milo rents a 9-square foot area in his salon to "Nails by Weinstein Ltd." On November 1, 2020 Milo received $6,000 from Prof. Weinstein for 8-months rent in advance. Milo developed a substantial backlog for the putrid, pasty, twit makeover which is designed to make clients look like Eminem. During 2020 Milo accepted $8,500 in advance for makeovers which would be performed in 2021. On December 16, 2020 Milo borrowed $300,000 @ 15%interest from Fuestal Capital Corp. The note has a term of 90-days. In January of 2021 Milo received a PSE&G bill for $6,600. Milo estimates that 40% of this unrecorded bill pertains to December 2020. During December 2020 Milo paid $2,625 for three months of maintenance to be provided from Dec. 1, 2020 to Feb. 28th, 2021. Milo's wildly popular Pacific seaweed facials require many application and several weeks for the maximum benefit to be realized. The company invoices (bills) the facial cost after the final treatment. As of the year-end $3,950 of seaweed facials had been performed but were not yet billed. Milo's employees are paid on a bi-weekly basis. On Friday January 8th, 2021 the employees were paid $13,200 for the two five-day work weeks then ended On December 10th, 2020 Milo purchased $5,600 of supplies. This amount was charged to the "Supplies expense account. The year-end inventory of supplies amounted to $3,430. All other supplies had been used as of year-end. Milo estimates the future cost relative to hairpiece warranties to be $14,700 Milo uses the 0.5% percent of sales mathod to estimate bad debts. The sales for December 2020 amounted to $198,000 f. 8 h j k Instructions: For each of the above conditions prepare the appropriate Dec. 31, 2020 adjusting journal entry
