FOR EACH OF THE FOLLOWING RECORD THE ORIGINAL ENTRY AND ADJUSTING ENTRY

1) JULY 1 YOU PURCHASE A TWO YEAR INSURANCE POLICY FOR FIRE AND FLOOD PROTECTION FOR $2400

JUNE 30 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 JUNE 30

2) JULY 1 YOU PURCHASED A MOTOR VEHICLE FOR $ 60,000 WITH A USEFUL LIFE OF 5 YEARS WITH NO SALVAGE VALUE AT END. YOU PURCHASED THE MOTOR VEHICLE ON CREDIT

JUNE 30 IT IS END OF THE YEAR AND YOU NEED TO MAKE ADJUSTING ENTRY TO RECORD DEPRECIATION FOR THE YEAR ON THE MOTOR VEHICLE

3) JUNE 15: YOUR SALARIES EXPENSE IS $800 & WAS PAID WITH CHECKS

JUNE 30 IT IS NOW END OF THE YEAR AND ALTHOUGH NEXT PAYROLL IS NOT UNTIL NEXT MONTH, YOU OWE YOUR EMPLOYEES $300 AND NEED TO MAKE THAT ADJUSTING ENTRY TO SHOW WHAT IS OWING TO EMPLOYEES AT JUNE 30

4) DEC 10 YOU PAID YOUR ELECTRICITY BILL FOR $425 BY BANK CHECK

JUNE 30 YOUR ELECTRICITY BILL IS $475. HOWEVER THIS WILL NOT BE PAID UNTIL July 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

5) JUNE 30 YOUR CREDIT SALES FOR THE YEAR WAS $ 400,000. RECORD THIS ENTRY TO SHOW CREDIT SALES OF $400,000.

ON JUNE 30 ADJUST FOR BAD DEBTS EXPECTED TO BE 2% OF CREDIT SALES