From the following information prepare adjusting journal entries:

The insurance premium outstanding on January 1, 2018, covers the period January 1 through August 31, 2018. The insurance premium of $7,800 recorded in August covers the period of September 1, 2018 through August 31, 2019. Rockford estimates that 75% of the premiums are attributable to general activities and 25% to selling activities. (Use Miscellaneous Expense).

The payroll summary for the employees who are paid biweekly shows the following information at December 31, 2018:

Delivery and Warehouse Wages ............................	$6,100
FICA Taxes Payable ................................................	440
Federal Withholding Taxes ....................................	1,036
State Withholding Taxes	218
Net pay	$4,406

The employers share of the FICA tax ($440) must be accrued; no state or federal unemployment tax is incurred during the fourth quarter because all wages and salaries earned during the last quarter exceed the maximum subject to unemployment tax.

Interest has accrued at 7% on the long-term notes payable since July 1, 2018. The next six-month interest payment at 6% on the bonds is due on March 1, 2019. The discount on bonds payable has not been amortized for any part of 2018; the bonds are dated March 1, 2012, and mature March 1, 2022. (Use straight-line.)

The interest accrued to 12/31/18 on notes receivable is composed of the following:

Platteville Plumbers, 10%, 6 months, due March 31, 2019 $1,125

Bilder Construction, 8%, 6 months, due June 17, 2019 139

Beverlys Building, 9%, 6 months, due June 26, 2019 17

$1,281

The interest accrued at 12/31/18 on the note payable of $15,000 @ 10% is $1,500. Interest is payable on January 2, 2019. (The note is due in 2019.)

A warehouse lease payment of $10,500 was made on September 1, 2018, for rental through February 28, 2019. (The Prepaid Rent account is for advance lease payments on the warehouse.)

$530 is owed to Northern Electric Co. and $279 is owed to City of Rockford for utility services provided during December 2018.

Plant and equipment to be depreciated are composed of the following:

Estimated

Assets	Date Acquired		Cost			Usage or Life		Salvage Value		Depreciation Method
Building	7/1/14			$306,000	25 years		$20,000		Sum of years digits
Truck No. 1	4/1/15			28,000	60,000 miles		3,100		miles driven
Truck No. 2	9/1/17			33,000	60,000 miles		4,200		miles driven
Lift No. 1	8/17/11			7,900	10 years		900		straight-line
(Sold 12/31/18)
Lift No. 2	3/29/14			4,500	10 years		500		straight-line
Lift No. 3	9/16/16			5,000	10 years		500		straight-line
Office	All prior to			32,800	7 years		2,000		straight-line
Equipment	1/1/18
Computer	12/22/18			6,100	4 years		1,300		Double-declining balance

Truck No. 1 has been driven 45,000 miles prior to 1/1/18 and truck No. 2 has been driven 30,500 miles prior to 1/1/18. During 2018 truck No. 1 was driven 12,000 miles and truck No. 2 was driven 14,000 miles. Remember that the Rockford Company takes a half-years depreciation in the year of acquisition and a half-year in the year of sale.

Federal and state income taxes are $52,938.