FOR EACH OF THE FOLLOWING RECORD THE ORIGINAL ENTRY 2 PTS AND ADJUSTING ENTRY 3 PTS TOTAL OF 15 PTS

1) JAN 1 YOU PURCHASE A TWO YEAR INSURANCE POLICY FOR FIRE AND HURRICANE

PROTECTION ON YOUR BUSINESS PROPERTY PAYING $ 2400

Dec 31 IT IS END OF THE YEAR AND YOU ARE NOW NEEDING TO MAKE AN ENTRY TO ADJUST FOR INSURANCE COVERAGE USED UP OR EXPIRED DURING THE YEAR AND TO REFLECT THE AMOUNT UNUSED OR UNEXPRIED AT DEC 31

2) JAN1 YOU PURCHASED A MOTOR VEHICLE FOR $ 60,000 USEFUL LIFE OF 5 YEARS NO SALVAGE VALUE AT END YOU PURCHASED THE MOTOR VEHICLE ON CREDIT TERMS

DEC 31 IT IS END OF THE YEAR AND YOU NEED TO MAKE ADJUSTING ENTRY TO RECORD DEPRECIATION FOR THE YEAR ON THE MOTOR VEHICLE

3) DEC 15 YOUR PAYROLL IE SALARIES EXPENSE IS $ 800 AND YOU PAID BY BANK CHEQUES

DEC 31 IT IS NOW END OF THE YEAR AND ALTHOUGH NEXT PAYROLL IS NOT UNTIL NEXT MONTH JAN 15 AT THE END OF THE YEAR YOU OWE YOUR EMPLOYEES $300 AND NEED TO MAKE THAT ADJUSTING ENTRY TO SHOW WHAT IS OWING TO EMPLOYEES AT DEC 31

4) DEC 10 YOU PAID YOUR BEL LIGHT BILL FOR $ 425 WHICH IS FOR NOV NOW BEING PAID AND PAYMENT IS BY BANK CHEQUE

DEC 31 YOUR DECEMBER LIJGHT BILL FOR BEL IS $ 475 HOWEVER THIS WILL NOT BE PAID UNTIL JAN 10 NEXT YEAR IT IS END OF FINANCIAL YEAR AND YOU NEED TO MAKE ADJUSTING ENTRIES SO YOU HAVE ALL EXPENSES FOR THE YEAR INCLUDED- PREPARE THAT ADJUSTING ENTRY

5) DEC 31 YOUR CREDIT SALES FOR THE YEAR WAS $ 400,000 RECORD THIS ENTRY TO SHOW CREDIT SALES OF $400,000

DEC 31 YOU HAVE ANALYZED AND DETERMINE THERE LIKELY WILL BE SOME MALPAGOS YOU DETERMINE YOU NEED ADJUSTING ENTRY TO PROVIDE FOR BAD DEBTS EXPECTED TO BE 2% OF CREDIT SALES RECORD THIS ADJUSTING ENTRY