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COMPLETE ADJUSTING ENTRIES Prepare adjusting journal entries in the general journal based on the following information (all AJES are dated September 30): 1. Inventory of
COMPLETE ADJUSTING ENTRIES Prepare adjusting journal entries in the general journal based on the following information (all AJES are dated September 30): 1. Inventory of the office supplies reveals that there is $2,750 worth of supplies left on hand. 2. Recognize portion of advertising expense used in month. 3. Recognize one month insurance expense for the expired insurance for month. 4. Ending Merchandise Inventory Balance on hand at the end of the month valued at $8,500. To establish a balance, increase the Merchandise Inventory account and post the offset to the Income Summary account for the value of the inventory (ending balance). 5. Accrue semimonthly payroll for Day 16 through Day 30, which won't be paid until next month for $1,808.75 (total payroll, $2,500.00, less deductions: employee income tax, $500.00; social security tax, $155.00; Medicare tax, $36.25). 6. Accrue employer payroll taxes for the month of $682.50. Taxes owed are: social security tax, $310.00; Medicare tax, $72.50; federal unemployment tax, $30; and state unemployment tax, $270. 7. Recognize one month of Interest expense on the note and the loan (Bank uses 360 days for business note/loan financing interest). 8. Uncollectible accounts are estimated to be 2.5 percent of sales on account. 9. Accrue depreciation expense for one month for all assets: building; equipment, computer, vehicle and furniture fixtures. Use straight-line method.
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