I need help with the adjusting entries please along with tha adjusted trail balance.

1. DeeDee does banking at three different financial institutions. The details are as DeeDee Double Entry

	Account #	Balance
	123456	175,000
	123457	(10000)
	345689	82000
	397567	(6700)

You also note the Board of Directors has restricted $27,000 of cash for future expansion. This $27,000 is part of the cash balance. The future expansion will not occur for several more years.

2. Based on your inquiries, you note that $67,000 of accounts receivable had been written off during the year. The clerk had debited bad debt expense for $67,000 and credited Accounts Receivable for $67,000. When $15,000 of accounts previously written off had been collected, the accountant debited cash and credited sales. The company uses the allowance method based on the aging of accounts receivable. Based on this method, DeeDee determines that uncollectible accounts are $86,000 at the end of 2017.

3.Per a physical count of office supplies, $4,826 of supplies remained at the end of 2017. The balance on the worksheet in the office supplies account represents last years ending balance. During the year, $28,500 of office supplies were purchased and immediately expensed.

4.Because of strong demand and a need for additional inventory, DeeDee needed some temporary additional storage space so on June 1, 2017 they rented a unit for an annual rate of $18,000 and they paid the entire amount up front.

5.On April 1, 2017 DeeDee loaned a key supplier, $75,000. A promissory note was signed and issued. The agreed upon interest rate was 5.5% and the key supplier has agreed to pay interest and $15,000 of the principle each January 1^st. The note was recorded in Notes Receivable and is the only note outstanding.

6.On February 1, 2017, DeeDee renewed a 16 month insurance policy for $9,000. All cash was paid at the time the policy was signed and prepaid insurance was increased. All other transactions involving insurance were properly recorded.

7.The office building was bought in January 1, 2015 by DeeDee and DeeDee originally planned to use the building for 40 years and estimated no salvage value. DeeDee depreciates the building on a straight line basis. Now in 2017, DeeDee estimates the total life to remain at 40 years, but believes the salvage will be $600,000.

8.DeeDee is open seven days a week and has a daily payroll of $8500. Employees are paid every Friday, December 31 is a Wednesday. 40% of the payroll is for office employees, 60% of payroll is for sales employees. The employer portion of FICA expense is 7.65% and no employee has reached the maximum. DeeDee records payroll tax expenses in salary expense.

9.On December 1, 2017 DeeDee paid ABC Advertising $16,000 for a four month campaign of advertising services. Equal services are provided each month. All other advertising paid for during the year has been consumed.

10.On August 1, 2017, DeeDee rented a portion of one store to Marketing Majors Inc. The contract was for 16 months and DeeDee required all of the cash up front. The rent is being earned equally each month. This is the only item in which rent is being earned by the company.

11.As of 12/31/2017 the Available for Sale Securities have a fair value of $261,000. Due to the market conditions, the company does not plan on selling the assets in 2017, but their intent is to sell at some point in time. You can ignore the tax effect on unrealized gains and losses. (Hint: Unrealized Gains and Losses are closed to Accumulated Other Comprehensive Income at the end of the year.)

12.DeeDee uses the DDB method to depreciate office equipment. No office equipment was added during 2017. It is estimated that the office equipment has a useful life of 10 years with a salvage value of $2,000. Prior depreciation was correctly calculated based on period of time held.

13.After reviewing details of sales, you note that the sales taxes collected on the last week of Decembers sales were included in sales revenue. Sales recorded the last week of December that included the sales tax of 5% amounted to $185,000.

14.On April 1, 2017, DeeDee recorded a patent in the amount of $250,000. The company paid outside legal fees of $120,000 to have the patent registered. The other $130,000 represents internal costs in developing the patent. The patent is good for 20 years, but the company estimates that the patent will have a useful life of 8 years with no residual value. No one knows what to do with this information so no amortization has been recorded for 2017. Amortization is straight line and the company depreciates using partial years for intangible assets.

15.The storage building was self-constructed this year by DeeDee. The Company had their initial expenditure of $700,000 on January 1. They paid an additional $500,000 on March 1^st , $300,000 on June 1^st, and then the final payment of $150,000 on August 1^st. when the building was completed and occupancy occurred. Payments to contractor were properly capitalized. The company has decided to use S/L method for depreciation. The storage building is estimated to have a life of 30 years and a savage value of $250,000. The company will take a full year of depreciation in year of acquisition.

16.You note that Leasehold Improvements have not been depreciated for this year. DeeDee started to lease some new retail space in 2017 and added shelving and fixtures to this leased space. Based on your review of invoices, the previous accountant capitalized the cost of fixtures but did not capitalize the shipping and installation costs of $5,426. These costs were expensed and recorded as a miscellaneous administrative expense. DeeDee has decided to use double declining balance (DDB) depreciation for this item and to take a full year of depreciation in the year of acquisition. The leasehold improvements have a useful life of 15 years with a salvage value of $10,000.

17.DeeDee Double Entry has two loans outstanding as of 12/31/2017. Interest is paid annually on January 1st. The facts on each loan are as follows: Onstar Bank Loan outstanding since January 1, 2017 with a 3.5% interest rate. This loan was taken out to finance the construction of the Storage Building. Interest for the year and 15% of the principle will be paid to the bank on January 1, 2018. Except for recording the initial cash received and loan, no additional entries have been made. Coldstar Bank Loan also outstanding all of 2017 with a 4.6% interest rate. Interest is due on January 1, 2018. Principle is due on January 1, 2023. Since interest will not be paid to the Bank until 2018, DeeDees office staff did not accrue any interest.

18.DeeDee added a one-year warranty to one of its computer games this year. It is estimated that the total cost of servicing the warranties on the 2017 sales will be $10,426. During 2017, $4,750 was refunded to customers for warranty issues on 2017 sales and recorded as warranty expense.

19.DeeDee uses the FIFO Inventory Method in valuing inventory. The inventory balance of $187,500 was based on a physical count at 12/31/2017. Based on your analysis, you have noted that $12,500 of marketing games that belonged to Marketing Majors Inc. was included in the account. You also note that goods were in transit from a vendor on December 31, 2017. The cost of the inventory was $16,200 and the goods were shipped f.o.b. shipping point on December 29, 2017.

20.DeeDee has a straight tax rate of 28%. Income tax expense is Net Income before taxes times 28%. (Hint: Prepare the Income Statement up to Net Income before Taxes and then record this adjusting journal entry.

DeeDee Double Entry, Incorporated End of Period Worksheet For the Year Ended December 3 2017 Account Title Trial Balance Cash 240,300 Accounts Receivable 925,000 49.000 Allowance for Doubtful Accounts Interest Receivable Merchandise Inventory 187,500 9000 Prepaid Insurance Prepaid Advertising Prepaid Rent 7800 Office Supplies 75.000 Note Receivable 380,000 Available for Sale Securities Office Building 4,250,000 221.500 Accumulated Depreciation Office Building Storage Building 1,650,000 Accumulated Depreciation Storage Building Land 450,000 Leasehold improvements 190,000 Accumulated Depreciation Leasehold Improvements 125.000 Office Equipment Accumulated Depreciation Office Equipment 42,000 Patent 250,000 145,000 Accounts Payable Sales Tax Payable Salaries Payable Payroll Taxes Payable Interest Payable Income Tax Payable 96000 Unearned Rent Revenue 500,000 Loan Payable Onstar Bank Loan Payable Coldstar Bank 2,250,000 425.000 Common Stock 2,800,000 Additional Paid in Capital 1,379,420 Retained Earnings 8500 Accumulated Other Comprehensive Income Adjustments Trial Balance DeeDee Double Entry, Incorporated End of Period Worksheet For the Year Ended December 3 2017 Account Title Trial Balance Cash 240,300 Accounts Receivable 925,000 49.000 Allowance for Doubtful Accounts Interest Receivable Merchandise Inventory 187,500 9000 Prepaid Insurance Prepaid Advertising Prepaid Rent 7800 Office Supplies 75.000 Note Receivable 380,000 Available for Sale Securities Office Building 4,250,000 221.500 Accumulated Depreciation Office Building Storage Building 1,650,000 Accumulated Depreciation Storage Building Land 450,000 Leasehold improvements 190,000 Accumulated Depreciation Leasehold Improvements 125.000 Office Equipment Accumulated Depreciation Office Equipment 42,000 Patent 250,000 145,000 Accounts Payable Sales Tax Payable Salaries Payable Payroll Taxes Payable Interest Payable Income Tax Payable 96000 Unearned Rent Revenue 500,000 Loan Payable Onstar Bank Loan Payable Coldstar Bank 2,250,000 425.000 Common Stock 2,800,000 Additional Paid in Capital 1,379,420 Retained Earnings 8500 Accumulated Other Comprehensive Income Adjustments Trial Balance