Adjustments On March 31, you notice the following: a) You have $44 worth of supplies on hand b) You need to recognize depreciation on the building c) You need to recognize interest accumulated on the 2 bank loans (do as one entry) d) You need to recognize insurance used e) You need to recognize depreciation on the kite making machine 1) You have accrued salaries of $477 g) You need to recognize/accrue federal income taxes of 25%. Round to the nearest dollar if needed. Hint: compute adjusted income based on all preceding information, and then determine and record income tax expense. Date 1-Jan Account Title Cash Common stock Debit Credit $156,050 SI56,050 S 51.666 21-Jan Land Cash $ 51,666 31-Jan Building 5323,575 S 23.575 $300,000 Bank loan payable 4 1.Jan Prepaid insurance $ 4,680 $ 4,680 $ 13,230 $ 7-Jan Inventory (175*5.6) Accounts payable S 13.230 $ 68.Jan Inventory Accounts payable 27 S27 S 179 7 13-Jan Supplies Cash $ 179 $ 2.295 $ 17-Jan Accounts Receivable Sales (10222.5) $ 2.295 17-Jan Cost of good sold Inventory 5571 $ 571 9 18-Jan Freight out Cash S 33 1021-Jan Accounts payable Inventory (1323059) Cash 27 (13230999) 13.252 $ 662 S 12,396 $ 1124-Jan Sales retum (10*225) Accounts Receivable 225 S225 5 56 Inventory Cost of good sold $ 56 121-Feb Inventory (7376) Accounts payable $ 4,342 $ 4,542 131-Feb Inventory $ 54 $ Cash 54 141-Feb Machine Cash Bank loan payable $ 19,500 S4500 $ 45,000 S 156-Feb Accounts payable Inventory 102 S 102 1612-Feb Cash $ 2,070 Account receivable (92*225) S2,070 S 17 19-Feb Salaries expenses Sans 656 5656 11:50 12 Feb Inventory (757) Accounts payable SO S 54 131-Feb Inventory Cash S 49.500 14 1-Feb Machine Cash Bank loan payable S 45,000 156.Feb S Accounts payable Inventory 102 STOC $ 2.070 16 12-Feb Cash Account receivable (92-22.5) 2.000 17 19-Feb Salaries expenses Salaries payable 1822-Feb Cash dividend Cash $ 175 $ 175 1925-Feb No entry required S 21,600 20 28-Feb Accounts Receivable Sales (800*27) $ 21.00 Cost of red sold Inventory S4,607 $ 4,607 2128-Feb Freight out Cash $ 144 S 144 225-Mar Salaries payable S656 Cash 235-Mar Utilities expenses S 576 249-Mar Accounts pyable (4542-102) 4440 Cash 25 15-MarCash Sales Discount (21600*3%) Accounts receivable $ 20,952 5 648 S 21.00 S 1.650 3622-Mar Inventory Accounts payable (1864"6.25) 11.650 2723-Mar Inventory 2828-Mar Accounts Receivable Sales (1580*31.75) S 50,165 S 50,165 Cost of good sold $ 10,011 S 10,011 S 202 2922-Mar Freight out Cash S 200
