Instructions Charger Inc. had the following items that require adjusting entries at the end of the year a Charger pays its employees $8,000 every Friday for a 5-day work week. This year December 31 falls on a Wednesday, b. Charger earned income of $770,000 for the year for tax purposes. Its effective tax rate is 30%. These taxes must be paid by April 15 of next year c. Charger borrowed $220,000 with a note payable dated August 1. This note specifies 6%. The interest and principal are due on March 31 of the following year. d. Charger's president earns a bonus equal to 10% of income in excess of $630,000. Income for the year was $770,000. This bonus is paid in May of the following year and any expense is charged to wages expense Required: Prepare the adjusting journal entries to record these transactions at the end of the current yew. CHART OF ACCOUNTS Charger Inc. General Ledger ASSETS 111 Cash REVENUE 411 Sales Revenue 412 Service Revenue 413 Interest Income 414 Rent Revenue 112 Petty Cash 121 Accounts Receivable 123 Allowance for Doubtful Accounts 124 Notes Receivable 125 Supplies 126 Prepaid Insurance 127 Prepaid Rent 128 Inventory 129 Interest Receivable EXPENSES 511 Cost of Goods Sold 512 Advertising Expense 513 Supplies Expense 514 Utilities Expense 515 Insurance Expense 516 Repairs and Maintenance Expense 517 Bad Debt Expense 518 Rent Expense 519 Warranty Expense 521 Wages Expense 130 Investment 131 Land 132 Buildings 133 Equipment 134 Furniture 135 Trucks 135 Trucks 139 Accumulated Depreciation 521 Wages Expense 523 Commissions Expense 524 Social Security Taxes Expense 525 Medicare Taxes Expense 526 Federal Unemployment Taxes Expense 527 State Unemployment Taxes Expense 531 Interest Expense 541 Amortization Expense 542 Depreciation Expense 551 Income Taxes Expense 552 Property Taxes Expense LIABILITIES 211 Accounts Payable 212 Utilities Payable 213 Insurance Payable 214 Interest Payable 215 Warranty Liability 216 Income Taxes Payable 221 Excise Taxes Payable (Federal) 222 Excise Taxes Payable (State) 223 Property Taxes Payable 224 Sales Taxes Payable (State) 231 Wages Payable 233 Commissions Payable 234 Federal Income Taxes Withholding Payable 235 State Income Taxes Withholding Payable 236 Social Security Taxes Payable 237 Medicare Taxes Payable 238 Charitable Contributions Payable 239 Union Dues Payable 241 Federal Unemployment Taxes Payable 242 State Unemployment Taxes Payable 251 Unearned Sales Revenue 252 Unearned Rent Revenue 261 Bonds Payable 262 Notes Payable EQUITY 311 Common Stock 321 Retained Earnings 331 Dividends General Journal Prepare the adjusting journal entries to record these transactions at the end of the current year on December 31 Prepare the adjusting journal entries to record these transactions at the end of the current year on December 31. General Journal Instructions GENERAL JOURNAL DEBIT POST. REF CREDIT ASSETS DATE ACCOUNT TITLE Adjusting Entries 1 2 3 4 6 7 Navt