Instructions The following information is available for Drake Company, which adjusts and closes its accounts every December 31: 1. Salaries accrued but unpaid total $2,840 on December 31. 2. The $247 December utility bill arrived on December 31 and has not been paid or recorded. 3. Buildings with a cost of $78,000, 25-year life, and $9,000 residual value are to be depreciated; equipment with a cost of $44.000, 8-year life, and $2,000 residual value is also to be depreciated. The straight-line method is to be used. 4. A count of supplies indicates that the Store Supplies account should be reduced by $128 and the Office Supplies account reduced by $397 for supplies used during the year. 5. The company holds a $6,000, 12% (annual rate), 6-month note receivable dated September 30, from a customer. The interest is to be collected on the maturity date. 6. Bad debts expense is estimated to be 1% of annual sales. Sales total $65,000 7. An analysis of the company insurance policies indicates that the Prepaid Insurance account is to be reduced for $528 of expired insurance. 8. A review of travel expense reports indicates that $310 has been paid for airfare for a salesperson (and recorded as Travel Expenses), but has not yet been used 9. The income tax rate is 30% on current income and will be paid in the first quarter of next year. The pretax income of the company before adjustments is $18,270. Required: Journalize the necessary year-end adjusting entries for Drake. Chart of Accounts CHART OF ACCOUNTS Drake Company General Ledger ASSETS REVENUE 411 Sales Revenue 431 Interest Revenue 111 Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 125 Notes Receivable 127 Interest Receivable 135 Office Supplies 136 Store Supplies 141 Inventory 152 Prepaid Insurance 153 Prepaid Travel 181 Buildings 182 Accumulated Depreciation: Buildings 183 Equipment 184 Accumulated Depreciation: Equipment EXPENSES 500 Cost of Goods Sold 512 Utilities Expense 515 Supplies Expense 521 Salaries Expense 523 Travel Expenses 531 Bad Debt Expense 532 Depreciation Expense 537 Insurance Expense 539 Miscellaneous Expenses 540 Interest Expense 700 Income Tax Expense LIABILITIES 211 Accounts Payable 221 Notes Payable 224 Interest Payable 231 Salaries Payable 241 Utilities Payable 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings