L Problem 1. Adjusting Entries (18 marks in toal, 3 marks for each adjusting entry) At year end, the several items have not yet been recorded. The following trial balance was taken from the books of Fisk Corporation on December 31, 2010. a. Prepare adjusting entry to accrue sales revenue at December 31, $5,000. Account Debit Credit Cash $ 12,000 b. Prepare adjusting entry to record estimated bad debts, 5% of gross receivable (gross receivable means Accounts Receivable + Notes Receivable). Accounts Receivable 40,000 Note Receivable 7,000 Allowance for Doubtful Accounts $ 180 c. Prepare adjusting entry to record depreciation on furniture and equipment, 10% Merchandise Inventory 44,000 of original purchase cost per year. Prepaid Insurance 4,800 Furniture and Equipment 125,000 Accumulated Depreciation--Furniture & Equipment. 15,000 d. Prepare adjusting entry to record interest at 6% on the note receivable for one Accounts Payable 10,800 full year. Common Stock 44,000 Retained Earnings 55,000 e. Prepare adjusting entry to record insurance paid in advance for one year at Sales 280,000 October 31, $4,800. Cost of Goods Sold 111,000 Salaries Expense 50,000 Rent Expense 12,800 - | 1 f. Prepare adjusting entry to accrued salaries at December 31, $5,800. Totals $406,600 $406,600