Algorithmic Granite Bay Jet Ski II Trial Balance After Bank Reconcilation June 30, 2822 Account Titles Debit Credit 71,259.41 182.ee 30, 181.40 1,533.60 10,000.00 164,823.68 6,255.ee 662.00 3,095.92 71,195.00 12,556.00 35, 447.ee 5,958.00 56,015.ee 4,167.69 16,879.12 1,818.30 15,679.00 10,000.00 225, eee.ee 113,968.95 2,400.ee 384,940.95 2,146.89 9,737.75 Cash Petty Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Merchandise Inventory Prepaid Insurance Prepaid Property Tax Store and Shop Supplies Store Equipment and Fixtures Accum. Deprec., Store Equip. and Fix. Shop Equipment Accum. Depreciation, Shop Equipment Trucks Accumulated Depreciation, Trucks Accounts Payable Sales Tax Payable Unearned Storage Fees Long-term Notes Payable Common Stock Retained Earnings Dividends Declared Watercraft and Accessory Sales Sales Returns and Allowances Service Fees Earned Cost of Goods Sold Transportation-In Salaries and Wages Expense Truck and Equipment Operating Exp. Advertising Expense Delivery Expense Credit Card Expense Tools Expense Dep. Expense, Store Equipment and Fix. Depreciation Expense, Shop Equipment Depreciation Expense, Trucks Rent Expense Utilities Expense Telephone Expense Bank Service Charges License Expense Professional Services Expense Cash Short and Over Discounts Lost Miscellaneous Expense Interest Earned Gain on Sale of Assets Miscellaneous Revenue Income Taxes Expense Interest Expense Loss on Sale/Disposal of Assets 222,379.29 632.ee 15,585.76 1,169.70 3,546.5e 894.35 1,670.19 41.12 80.00 260.00 240.00 14,872.00 834.64 420.ee 134.13 929.00 988.69 22.05 237.00 75.97 292.79 210.00 127.56 3,221.60 1,028.91 195.00 Total 722,868.42 722,868.42 ADJUSTING ENTRIES FOR THE QUARTER Using a copy of the June 30 Unadjusted Trial Balance (printed after the bank reconciliation entries) and the information and financial data shown below, record the adjusting entries for Granite Bay Jet Ski, Inc. Be sure to select the Adjusting JE button to journalize the adjusting entries. Adjusting entries must NOT be entered using the daily entries (Daily JE) procedure. Corrections to adjusting entries must also be entered using the adjusting entries selection. Be sure to round all calculations to the nearest one cent. ALL ENTRIES MUST BE RECORDED AS OF JUNE 30, THE END OF THE SECOND QUARTER! A. The unexpired insurance balance is $3,780.00. B. The ending store and shop supplies inventory is $2,118.00. C. It is estimated that 20% of the balance of the Advertising Expense account is for advertising that will appear in various media early in the next quarter. D. All of the prepaid property tax is an expense for the quarter. E. Wages accrued total 8.5 hours worked at $11.30 per hour. F. Storage Fees Earned for the quarter total $10,450.00. G. Straight-line depreciation of store equipment and fixtures totals $2.250.00 for the quarter. The new store equipment acquired June 26 will not be depreciated this quarter. H. Depreciation of shop equipment is $460.00 per month. The new shop equipment acquired during the final week of June will not be depreciated for the second quarter. I. Granite Bay Jet Ski, Inc., has three trucks. The new truck acquired on June 21 will not be depreciated this quarter. An old truck used only for short distance heavy hauling is fully depreciated. The third truck was acquired at a cost of $25,500.00, has a salvage value of $7,500.00, is depreciated on a miles driven basis (units of production depreciation), and has an estimated service life of 120,000 miles. The truck was driven 2,240 miles during the quarter. J. Accrue the interest on the short-term notes receivable. Calculate the interest to the nearest cent. Use the 360-day banker's year for all interest computations and record a single adjusting entry for the short-term interest. Note Receivable: $10,000, 9.0%, 60-day note, dated June 22 K. The $10,000.00 balance in the Long-Term Note Payable account is the balance owing from a $100,000.00, 6% note that requires quarterly payments of $5,000.00 plus accrued interest on the unpaid balance. The $5,000.00 payments, plus accrued interest from the previous quarter, are made the first day of January, April, July, and October of each year. Accrue the quarterly interest on the $10,000.00, 6%, long-term notes payable. L. Additional income taxes expense for the period total $2,520.00. M. The balance sheet (computer aging) method is used to estimate the balance of the Allowance for Doubtful Accounts account for the end of each quarter. The program has analyzed all accounts receivable and calculated the estimated balance of the account to be $2,190.50