Lloyd Christmas, Ltd.'s accounting records reflect the following account balances at January 1, 2005 (beginning of the year Account Debit Credit uipment Invent Accounts Receivable Buildin Cash Supplies $160,000 $95,000 S 20,000 $100,000 $ 150,000 S 12,000 $15,000 $100,000 aid Rent Land Unearned Revenues Accounts Payable Accumulated Depreciation- $50,000 $60,000 $30,000 uipment Accumulated Note Payable Owners' Capital reciation - Bld $50,000 $140,000 $322,000 This company uses the perpetual inventory system (therefore, the company records a decrease to inventory and COGS expense for every sale). There were no owner investments or owner withdrawals for the year. Make the following adjustments for the year ended December 31 2005: Example: The company made a sale of services on credit. (see table below for entry) 1)The Prepaid Rent for Lloyd Christmas Ltd. was paid on December 31,2004 (the journal entry for the initial prepayment has already been made). The lease was for two years Make the adjustment for the expired rent at December 31, 2005 (for the whole year) The note payable was taken out last year. The note carries an annual interest rate of 7%. Interest needs to be accrued for the entire year. The interest will be paid February 8th 2006 (next year). Record the adjustment necessary at December 31, 2005. 2) 3)Employee salaries in the amount of $55,000 were incurred for the year. Of that amount, S50,000 had been paid in cash, the remainder was still owed to employees at the end of the year. Record the journal entry necessary at December 31,2005 to account for both the paid and unpaid portion of salaries. 4)At the end of the year, $5,000 of the supplies remained on hand. Record the adjustment necessary at December 31, 200.5 The company paid $20,000 on their accounts payable during the year. Record the entry The company made sales of merchandise (inventory) to customers for a total $235,000 The sales were made half on credit, and half in cash. The inventory sold had originally cost the company $90,000 (hint: this is your cost of goods sold expense). The company provided the services associated with the Unearned Revenues balance at the beginning of the year. Record the adjustment necessary for the year 2005 At December 31, the company had earned S35,000 in tax consulting revenue, but had not yet received payment from their customer. Record the adjustment necessary at December 31,2005. 5) 6) 7) 8) 9)On December 31, received $15,000 in cash representing advance payment for services to be provided in February of 2006. Record the adjustment necessary at December 31, 2005