Comprehensive Problem 3 Part 4:

Note: You must complete parts 1, 2, and 3 before completing part 4 of this comprehensive problem.

Based on the following selected data, journalize the adjusting entries as of December 31 of the current year.

For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank.

a. Estimated uncollectible accounts at December 31, $16,000, based on an aging of accounts receivable. The balance of Allowance for Doubtful Accounts at December 31 was $2,000 (debit).

Date	Description	Debit	Credit
Dec. 31

b. The physical inventory on December 31 indicated an inventory shrinkage of $3,300.

Date	Description	Debit	Credit
Dec. 31

c. Prepaid insurance expired during the year, $22,820.

Date	Description	Debit	Credit
Dec. 31

d. Office supplies used during the year, $3,920.

Date	Description	Debit	Credit
Dec. 31

e. Depreciation is computed as follows:

Asset		Cost		Residual Value		Acquisition Date		Useful Life in Years		Depreciation Method Used
Buildings		$900,000		$ 0		January 2		50		Double-declining-balance
Office Equip.		246,000		26,000		January 3		5		Straight-line
Store Equip.		112,000		12,000		July 1		10		Straight-line

Date	Description	Debit	Credit
Dec. 31

f. A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for 8 years.

Date	Description	Debit	Credit
Dec. 31

g. The cost of mineral rights was $546,000. Of the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year.

Date	Description	Debit	Credit
Dec. 31

h. Vacation pay expense for December, $10,500.

Date	Description	Debit	Credit
Dec. 31

i. A product warranty was granted beginning December 1 and covering a one-year period. The estimated cost is 4% of sales, which totaled $1,900,000 in December.

Date	Description	Debit	Credit
Dec. 31

j. Interest was accrued on the $100,000, 9% note receivable received on October 17. Assume 360 days per year.

Date	Description	Debit	Credit
Dec. 31