Learning Objective 5 entory 14,901 Income Summary 14,901 (c) Dec. 31 Insurance Expense 1,260 Prepaid Insurance 1,260 (d) Dec. 31 Advertising Expense 790 Prepaid Advertising 790 (e) Dec. 31 Unearned Membership Fees 8,400 Membership Fees Income 8,400 (f) Dec. 31 Depreciation Expense, Equipment 1,347 Accumulated Depreciation, Equipment 1,347 (9) Dec. 31 Wages Expense 630 Wages Payable 630 (h) Dec. 31 Supplies Expense 2,360 Supplies 2,360 Journalize the required adjusting entries for the year ended December 31 for Butler Spa and Pool Accessories. Butler Spa and Pool Accessories uses the periodic inventory system. a-b. On December 31, a physical count of inventory was taken. The physical count amounted to $14,901. The Merchandise Inventory account shows a balance of $14,305. C. On July 1 of this year, $2,520 was paid for a one-year insurance policy. d. On November 1 of this year, $1,185 was paid for three months of advertising. e. As of December 31, the balance of the Unearned Membership Fees account is $14,000. Of this amount, $8,400 has been earned. f. Equipment purchased on May 1 of this year for $11,200 is expected to have a useful life of five years with a trade-in value of $1,000. All other equipment has been fully depreciated. The straight-line method is used. g. As of December 31, three days' wages at $210 per day had accrued. h. As of December 31, the balance of the supplies account is $4,010. A physical inventory of the supplies was taken, with an amount of $1,650 determined to be on hand GENERAL JOURNAL PAGE DATE DESCRIPTION POST. REF. DEBIT CREDIT 20-- Adjusting Entries (a) Dec. 31 Income Summary 14,305