Compute and Journalize the Year-End Adjusting Entries Following These Journal Transactions:

**All journal entries pertaining to the questions are provided below**

9/3 You ordered business cards and stationary from Marketing Media on account. The order totaled $250 and will be shipped FOB Destination. (Record all purchases of supplies in the Supplies on Hand account).

9/4 You decided to purchase a new vehicle for your business. Upon visiting Pro-Auto, you decide on a new SUV at a cost of $55,000. This vehicle will be used 100% for business purposes. You finance the vehicle with Pig E Bank at a rate of 5% for 6 years. Your first monthly payment is due on October 4.

NOTE: You will need to create a loan amortization schedule to determine the amount of the monthly note and the interest expense for each month. You can use a website such as www.bankrate.com to create the schedule. When recording your journal entries, round all amounts to the nearest dollar.

9/5 You went to the KEM Supply to purchase supplies for your business at a cost of $600. KEM opened a customer charge account for you. The payment terms on your account will be 2/10, net 30. The time period for determining the payment amount begins on the purchase date.

9/6 You purchased a one-year auto insurance policy from InsureMart for $1200. InsureMart will send you a bill for the policy. YOUR Accounting Corporation capitalizes all insurance policies on the date of purchase and records the necessary expense at year-end as an adjusting entry.

9/14 You paid KEM Supply by issuing check #102

9/16 Marketing Media delivered your business cards and stationary. Check #103 was issued to pay for the supplies.

11/1 You purchase a 6-month liability insurance policy for YOUR Accounting Corp. by issuing check #113 in the amount of $300. YOUR Accounting Corporation capitalizes all insurance policies on the date of purchase and records the necessary expense at year-end as an adjusting entry.

12/31 A physical count of the supplies on hand indicates that you have $150 of supplies remaining.

Year-End Adjusting Entries:

12/31 Calculate the amount of the Long-Term Note Payable to Pig E. Bank that will come due in the next fiscal year. Prepare a journal entry to reclassify this amount as Current Maturities of Long-Term Debt.

12/31 Calculate the amount of the prepaid insurance that has expired during the year. Prepare the appropriate adjusting entry.

12/31 A physical count of the supplies on hand indicates that you have $150 of supplies remaining.