eBook Calculator Print Item The following are several transactions of Ardery Company that occurred during the current year and were recorded in permanent (that is, balance sheet) accounts unless indicated otherwise Date Apr. 1 May 15 June 2 Transaction Purchased a delivery van for $20,000, paying $1,000 down, and issuing a 1-year, 6% note payable for the $19,000 balance. It is estimated that the van has a 4-year life and an $800 residual value, the company uses straight-line depreciation. The interest on the note will be paid on the maturity date. Purchased $800 of office supplies. Purchased a 2-year comprehensive insurance policy for $720. Received 6 months rent in advance at $300 per month and recorded the $1,800 receipt as Rent Revenue. Advanced $600 to sales personnel to cover their future travel costs Accepted a 4,000, 6-month, 6% (annual rate) note receivable from a customer, the interest to be collected when the note is collected Aug. 1 Sept. 15 Nov. 1 The following information also is available: 1. On January 1, the Office Supplies account had a $250 balance. On December 31, an inventory count showed $180 of office supplies on hand 2. The weekly (5-day) payroll of Ardery Company amounts to $2.000. All employees are paid at the close of business each Wednesday. A 2-day accrual is required for the current year. 3. Sales personnel travel cost reports indicate that $450 of advances had been used to pay travel expenses 4. The income tax rate is 30% on current income and is payable in the first quarter of next year. The pretax income before the adjusting entries is On the basis of the above information, prepare journal entries to record whatever adjustments are necessary to bring the accounts up to date on December 31 Chart of Accounts CHART OF ACCOUNTS Ardery Company General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 421 Rent Revenue 431 Interest income 122 Advances to Sales Personnel 141 Inventory 152 Prepaid Insurance 155 Office Supplies 157 Interest Receivable EXPENSES 500 Cost of Goods Sold 181 Equipment 189 Accumulated Depreciation 511 Insurance Expense 512 Utilities Expense 521 Salaries Expenso eBook Calculator Print Item 122 Advances to Sales Personnel 431 Interest Income EXPENSES 141 Inventory 152 Prepaid Insurance 155 Office Supplies 157 Interest Receivable 181 Equipment 189 Accumulated Depreciation 500 Cost of Goods Sold LIABILITIES 211 Accounts Payable 224 Interest Payable 231 Salaries Payable 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 536 Office Supplies Expense 540 Interest Expense 541 Depreciation Expense 557 Selling Expenses 559 Miscellaneous Expenses 910 Income Tax Expense 250 Unearned Rent 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Calculator Print Item Adjusting Enures 2 Dec. 31 Equipment 20,000.00 3 Cash 1,000.00 4 Accounts Payable 19,000.00 5 Dec. 31 Office Supplies 800.00 6 Cash 800.00 7 Dec. 31 Prepaid Insurance 720.00 8 Cash 720.00 9 Dec. 31 Cash 1.800.00 10 Unearned Rent 1.800.00 Dec 31 Prepaid Insurance 600.00 12 Cash 600.00 13 Dec. 31 Accounts Payable 4,000.00 14 Accounts Receivable 4,000.00 15 250.00 16 Dec. 31" Office Supplies Expense Office Supplies Dec. 31 Salaries Expense Salaries Payable 250.00 17 800.00 18 800.00 19 Cash 800.00 Instructions The following are several transactions of Ardery Company that occurred during the current year and were recorded in permanent that is, balance sheet) accounts unless indicated otherwise Date Transaction Apr. 1 May 15 June 2 Purchased a delivery van for $20,000, paying $1,000 down, and issuing a 1-year, 6% note payable for the $19,000 balance. It is estimated that the van has a 4-year life and an $800 residual value, the company uses straight-line depreciation. The interest on the note will be paid on the maturity date Purchased $800 of office supplies. Purchased a 2-year comprehensive insurance policy for $720 Received 6 months' rent in advance at $300 per month and recorded the $1,800 receipt as Rent Revenue Advanced $600 to sales personnel to cover their future travel costs Accepted a 54,000, 6-month, 6% (annual rate) note receivable from a customer, the interest to be collected when the note is collected Aug. 1 Sept. 15 Nov. 1 The following information also is available: 1. On January 1, the Office Supplies account had a $250 balance. On December 31, an inventory count showed $180 of office supplies on hand 2. The weekly (5-day) payroll of Ardery Company amounts to $2,000. All employees are paid at the close of business each Wednesday A2-day accrual is required for the current year Calculator Print item 2. The weekly (5-day) payroll of Ardery Company amounts to $2,000. All employees are paid at the close of business each Wednesday. A 2-day accrual is required for the current year. 3. Sales personnel travel cost reports indicate that $450 of advances had been used to pay travel expenses 4. The income tax rate is 30% on current income and is payable in the first quarter of next year. The pretax income before the adjusting entries is 58,655 Required: On the basis of the above information, prepare journal entries to record whatever adjustments are necessary to bring the accounts up to date on December 31 Chart of Accounts CHART OF ACCOUNTS Ardery Company General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 421 Rent Revenue 431 Interest Income 122 Advances to Sales Personnel 111 Cash 411 Sales Revenue 121 Accounts Receivable 421 Rent Revenue 431 Interest Income EXPENSES 122 Advances to Sales Personnel 141 Inventory 152 Prepaid Insurance 155 Office Supplies 157 Interest Receivable 181 Equipment 189 Accumulated Depreciation 500 Cost of Goods Sold LIABILITIES 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 536 Office Supplies Expense 540 Interest Expense 541 Depreciation Expense 557 Selling Expenses 559 Miscellaneous Expenses 910 Income Tax Expense 211 Accounts Payable 224 Interest Payable 231 Salaries Payable 250 Unearned Rent 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Calculator Print Item eBook Hujung Dec. 31 Equipment 20.000.00 Cash 1,000.00 4 19.000.00 Accounts Payable Office Supplies 5 Dec. 31 800.00 6 Cash 800.00 7 Dec. 31 Prepaid Insurance 720.00 8 Cash 720.00 Dec. 31 9 1,800.00 Cash 1.800.00 10 Unearned Rent 600.00 11 Dec 31 Prepaid Insurance 600.00 12 Cash 15 4,000.00 Dec. 31 Accounts Payable 4.000.00 14 Accounts Receivable 250.00 15 250.00 16 Dec. 31 Office Supplies Expense Office Supplies Dec. 31 Salaries Expense Salaries Payable 800.00 17 800.00 16 800.00 19 Cash