Dec. 24 Paid workers for the previous two weeks work, $4,200

Dec 26 Paid $6,860 to KP Company for inventory purchased on December 15, the inventory had a list price of $7,000 and the terms were 2/15, n/30

Dec 28 Sold merchandise to MF Company for $8,000 cash. The merchandise cost $5,900.

Dec 29 Purchased $600 of office supplies for cash

Dec 29 Received payment from AW Company for sale of merchandise on December 16. The sales price was $2,500 and the terms were 2/10, n/30.

Dec 30 Sold merchandise to APC Company for $10,000 on account. The terms are 3/15, n/45. The merchandise cost $7,500.

Dec 30 Wrote off WHY Companys account as uncollectible. The sale to WHY occurred on June 20, 2022. The amount of the sale was $3,000 and the terms were n/30.

Dec 31 Purchased $9,000 of merchandise inventory from MSPC Company. The terms are 2/10, n/45.

NEED ADJUSTING ENTRIES BELOW

Information for year-end adjusting entries:

• On December 31, there are $800 of office supplies on hand
• JOHNSON borrowed the $120,000 on July 1, 2022. JOHNSON must make annual interest payments each September 30 and pay the full note on September 30, 2025. The interest rate on the note is 7%.
• Employees have earned $1,400 in wages for work done since the last payday (December 24)
• The prepaid rent was paid on April 1, 2022, and covers a one-year period starting on April 1, 2022.
• JOHNSON paid $2,100 for a one-year insurance policy on August 1, 2022. Coverage began on that date.
• The Building has a twenty-five year useful life and a $10,000 salvage value.
• The Equipment has an eight-year useful life and no salvage value.
• JOHNSON uses straight-line to depreciate its plant assets.
• December utilities are $480 and will be paid in January
• JOHNSON estimates its bad debts at 1% of its sales.

Here is the trial balance so far:

Trial Balance December 23,2022 \begin{tabular}{|r|l|r|r|} \hline Acct \# & Account & \multicolumn{1}{|l|}{ Debit } & \multicolumn{1}{l|}{ Credit } \\ \hline 101 & Cash & 29,800 & \\ \hline 102 & Accounts Receivable & 32,510 & \\ \hline 103 & Allowance for Bad Debts & & 2,800 \\ \hline 104 & Merchandise Inventory & 35,200 & \\ \hline 105 & office Supplies & 2,400 & \\ \hline 106 & Prepaid Rent & 3,600 & \\ \hline 107 & Prepaid Insurance & 2,100 & \\ \hline 110 & Land & 50,000 & \\ \hline 111 & Building & 280,000 & \\ \hline 112 & Accumulated Depreciation - Building & & 56,000 \\ \hline 115 & Equipment & 96,000 & \\ \hline 116 & Accumulated Depreciation - Equipment & & 39,000 \\ \hline 201 & Accounts Payable & & 26,610 \\ \hline 202 & Wages Payable & & \\ \hline 203 & Interest Payable & & \\ \hline 205 & Utilities Payable & & \\ \hline 210 & Notes Payable & & \\ \hline 301 & Common Stock & & \\ \hline 302 & Retained Earnings & & \\ \hline 305 & Dividends & & \\ \hline \end{tabular} \begin{tabular}{|r|l|r|r|} \hline 305 & Dividends & 5,500 & \\ \hline 401 & Sales & & \\ \hline 402 & Sales Discount Forfeited & & 495,000 \\ \hline 501 & Cost of Goods Sold & 1,100 \\ \hline 502 & Wages Expense & 370,000 & \\ \hline 503 & Rent Expense & 78,000 & \\ \hline 504 & Utilities Expense & 3,800 & \\ \hline 505 & Depreciation Expense & 4,700 & \\ \hline 506 & Interest Expense & & \\ \hline 507 & Supplies Expense & & \\ \hline 508 & Bad Debt Expense & & \\ \hline 509 & Insurance Expense & & \\ \hline & Totals & & \\ \hline \end{tabular}