At the end of September, the first month of operations, there are several adjusting entries to be made. We can identify the accounts that need to be adjusted. They are: prepaid expenses, warehouse building, store fixtures, franchise fee and taxes payable. Take note that adjusting entries do not involve any economic exchange with a third party. 11. Expiration of $1,000 of pre-paid expenses 12. Depreciation of warehouse building $300 13. Amortization of franchise fee $750. 14. Depreciation of store fixture $100 15. Accrual of estimated September tax expense of $950 as taxes payable Using the Exhibits on the following pages, please do the following: H. Record journal entries for the initial transactions (continue on Exhibit 6) I. Posting these journal entries to the T-accounts (continue on Exhibit 7)