Fiddler Music Company, which prepares annual financial statements, is preparing adjusting entries on December 31. Analysis indicates the following: 1)The company is the defendant in an employee discrimination lawsuit involving $50,000 of damages. Legal counsel believes it is unlikely that the company will have to pay any damages. 2) December 31st is a Friday. The employees of the company have been paid on Monday, December 27th for the previous week which ended on Friday, December 24th. The company employs 30 people who earn $80 per day and 15 people who earn $120 per day. All employees work 5-day weeks. 3) Employees are entitled to one day's vacation for each month worked. All employees described above in (2.) worked the month of December. 4) The company is a defendant in a $750,000 product liability lawsuit. Legal counsel believes the company probably will have to pay the amount requested. 5) On November 1, Fiddler signed a $10,000, 6-month, 8% note payable. No interest has been accrued to date. Instructions Prepare any adjusting entries necessary at the end of the year. Note: The order below will not be identical as above. (/10 TI) Enter each adjusting entries using the below example: DR Cash 10000 CR MacPhail, Capital 10000