Given below is the unadjusted trial balance for Starwards Condos as at June 30, 2021, its year end Starwards Condos Trial Balance June 30, 2019 Debit Credit Cash $29,000 Accounts receivable 54,000 Allowance for doubtful accounts 2,400 Supplies 2,000 Prepaid property taxes 8,000 Prepaid insurance 4,800 Land 610,000 Buildings 880,000 Accumulated depreciation buildings $220,000 Equipment 268,000 Accumulated depreciation equipment 130,000 Goodwill 113,800 Accounts payable 38,000 Unearned revenue 55,000 Notes payable (due December 31, 2024) 85,000 Common shares 900,000 Retained Earnings, July 1, 2020 215,000 Dividends 18,000 Rental revenue 600,000 Utilities expense 23,760 Property tax expense 17,600 Insurance expense 15,480 Supplies expense 16,960 Maintenance expense 14,800 Salaries and wages expense 126,400 Income tax expense 38,000 $2,243,000 $2,243,000 Additional information All expense accounts relate to cash payments made during the year Unpaid balances not accrued at the year end include a utilities bill for $1,940 The property tax expense has been paid for the 2021 calendar year The year end inventory count revealed that $3,000 of supplies had not yet been consumed Prepaid insurance includes six months insurance unexpired at the beginning of the fiscal year On January 1, 2021, an 18 month insurance policy was purchased and recorded as insurance expense When tenants prepay their rent, the amount is recorded to unearned revenue By the end of the year, $42,000 of such advance payments had expired The notes payable relate to an amount borrowed on January 1, 2021 The note bears an interest rate of 9 , payable every December 31 During the year, the company had to write off accounts receivable in excess of the allowance for doubtful accounts (AFDA) established in the previous year It has been determined that AFDA should be 6 of ending accounts receivable Buildings are depreciated over an estimated useful life of 20 years with no residual value Equipment is depreciated over a 10 year useful life with an $8,000 residual value Both assets are depreciated using the straight line method The total income tax expense for the year is calculated to be $98,000 The company has made advance installment payments for income tax amounting to $38,000, which have been recorded as Income Tax expense Required Prepare the adjusting journal entries required at year end (15 marks)

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Given below is the unadjusted trial balance for Starwards Condos as at June 30, 2021, its year end.

Starwards Condos
Trial Balance
June 30, 2019
	Debit	Credit
Cash	$29,000
Accounts receivable	54,000
Allowance for doubtful accounts	2,400
Supplies	2,000
Prepaid property taxes	8,000
Prepaid insurance	4,800
Land	610,000
Buildings	880,000
Accumulated depreciation - buildings		$220,000
Equipment	268,000
Accumulated depreciation - equipment		130,000
Goodwill	113,800
Accounts payable		38,000
Unearned revenue		55,000
Notes payable (due December 31, 2024)		85,000
Common shares		900,000
Retained Earnings, July 1, 2020		215,000
Dividends	18,000
Rental revenue		600,000
Utilities expense	23,760
Property tax expense	17,600
Insurance expense	15,480
Supplies expense	16,960
Maintenance expense	14,800
Salaries and wages expense	126,400
Income tax expense	38,000
	$2,243,000	$2,243,000

Additional information:

All expense accounts relate to cash payments made during the year.
1. Unpaid balances not accrued at the year-end include a utilities bill for $1,940.
2. The property tax expense has been paid for the 2021 calendar year.
3. The year-end inventory count revealed that $3,000 of supplies had not yet been consumed.
4. Prepaid insurance includes six months insurance unexpired at the beginning of the fiscal year. On January 1, 2021, an 18-month insurance policy was purchased and recorded as insurance expense.

When tenants prepay their rent, the amount is recorded to unearned revenue. By the end of the year, $42,000 of such advance payments had expired.

The notes payable relate to an amount borrowed on January 1, 2021. The note bears an interest rate of 9%, payable every December 31.

During the year, the company had to write off accounts receivable in excess of the allowance for doubtful accounts (AFDA) established in the previous year. It has been determined that AFDA should be 6% of ending accounts receivable.

Buildings are depreciated over an estimated useful life of 20 years with no residual value. Equipment is depreciated over a 10 year useful life with an $8,000 residual value. Both assets are depreciated using the straight line method.

The total income tax expense for the year is calculated to be $98,000. The company has made advance installment payments for income tax amounting to $38,000, which have been recorded as Income Tax expense.

Required:

Prepare the adjusting journal entries required at year-end (15 marks)