Dresser Company sells one product. This summarizes the accounting cycle for 2016 for Dresser Company.

1. Prepare an unadjusted trial balance as of Dec. 31, 2016 and Prepare the adjusting journal entries

Adjusting Journal Entries:

Prepaid insurance expires evenly each month.

A count of supplies at year end revealed $380 of supplies on hand.

Interest is recorded on the short-term note receivable.

Interest is recorded on the long-term note receivable.

Interest is recorded on the Bonds Payable.

Depreciation on the equipment is calculated using the sum-of-years-digits method. The salvage value is $2,000, life is 10 years, and 4 years are depreciated as of Dec. 31, 2015.

Depreciation on the building is calculated using the straight-line method. The salvage value is $10,000, life is 30 years, and 10 years are depreciated as of Dec. 31, 2015.

Salaries and wages payable at year end amounted to $750.

Dresser performed an aging analysis of its year end Accounts Receivable as follows:

		0-30 days	31-60 days	days	> 90 days
A/R Balance %	$ (balance)	50%	25%	15%	10%
% Uncollectible		12%	30%	60%	80%

After all entries are recorded, an entry for income tax is recorded.