Journalize the adjusting entries for the following data at

December close of current year.

The prepaid insurance account before adjustment on December has a

balance of P After month end review, unexpired balance should

have been P

Salaries are paid uniformly P for a fiveday workweek, ending on

Friday. The last payout of the year was Friday, December

Kitchen supplies account balance before adjusting, P; Kitchen

supplies inventory on December P

Store supplies of P were bought during the year and were debited

to Store supplies expense account. On December supplies of P

are still on hand.

The Prepaid Advertising account shows a total of P representing

the cost of oneyear contract dated June

On September Deferred Rent was credited for Prepresenting

rental for ten months beginning on that date.

The company acquired cooking equipment on July costing P

with an estimated resale value of P after an estimated useful life of

years.

Accounts receivable balance on December amounted to P

Of this amount, P are estimated to be uncollectible.

The Notes receivable account has a balance of P representing a

day, note received on August The interest on the note is

collectible upon maturity.

Problem The following information were gathered from books of Sana

Company at December the end of its first year of operations.

Prepare the necessary adjusting entries.

a Supplies of P were bought during the year and were debited to

Supplies expense account. On December supplies of P are on

hand.

b The Prepaid Insurance account shows a balance of P representing

the cost of a twoyear insurance policy dated August

c On November the company rented one of its spaces and

received P representing fivemonth rent beginning on that date.

The amount was credited to Deferred Rent Revenue.

d The company purchased equipment on June costing P It

has an estimated useful life of years and scrap value of P

It is It is estimated that of the accounts receivable at the end of the year is

uncollectible. Accounts Receivable balance at December is

P The Allowance for Doubtful Accounts shows a credit balance

before adjustment of P

f On December the company issued a day, note for P

The interest on the note is payable on maturity.