Hello, I am very excited to have concluded Kosko Wholesale first full year of operation! We started off on January 1, issuing 100,000 common shares of the company for $4 per share, the next day we purchased equipment for $120,000, paying $60,000 cash and financed the balance using a note payable. At the same time, we paid for a two-year insurance policy covering the new equipment, which cost $4,900. Of course, we needed to rent a space to operate from and we made rent payments of $54,500 for the year which included 12 months rent and one months damage deposit which we expect to get back at the end of the lease.

Over the course of the year we purchased $185,000 worth of Inventory of which $153,000 was sold to customers. These sales totalled $278,000 in revenue, $192,000 of which was on credit. Throughout the year we collected $153,000 from outstanding customer accounts and paid $78,000 to suppliers. Our employees earned wages totalling $119,000, of which $22,000 remained unpaid at the end of the year.

I know that I need to make changes at my year end to reflect adjustments to ending balances in some of my accounts, but I am unsure how to do so. Could you please ensure that my insurance and interest expense are recorded properly to reflect the full year? Additionally, I will need an adjusted trial balance prepared, as well as closing entries posted to their T accounts. Oh yeah, in case you need it, the note has a one-year term and an interest rate of 6%.