Adjustments on December 31 are required as follows:

adjustments entries

1 Ending inventory is 90,610

2 The allowance for doubtful accounts is to be increased to a balance of 3500

3 The building is depreciated on a straight line basis based on a 20 year useful life. ( no salvage value, record one full year)

4 Accrued Salaries Payable are 4050

5 Supplies on hand are 780

6 Prepaid insurance should be 860

7 unearned sales revenue should have balance of 800

8 accrued real estate taxes are 700

9 accrued interest on the mortgage is 160

10 income tax expense is estimated to be 3850