Month End Adjustments

Adjusting Entries

To: Student Accountant From: Helena St. Pierre Month end Adjustments MEMO Date: 31-Dec-19 (A) The unexpired insurance account at December 31st needs to be adjusted to a balance of $7,875. (B) The depreciation on the equipment is computed on a straight-line basis based on the cost of the assets; for December it works out to $3,051.09. ($366, 131.00 x 1/10 x 1/12.) (C) The depreciation on the building is computed on a straight-line basis based on the cost of the asset; for December it works out to $5,000.00. ($1,500,000.00 x 1/25 x 1/12) (D) The accrued interest owing on the Note Payable at December 31st is $1, 140.00.To: Student Accountant From: Helena St. Pierre Month end Date: 31-Dec-19 Adjustments (E) There are accrued property taxes owing for the month of December in the amount of $2,300. (F) The accrued salaries owing for December 31st amounts to $1,230.00. (G) The Inventory account needs to be reduced by $6,240 due to an accident in the warehouse which resulted in some damage to a few pinball machines. These are the ones affected: code #2080 - $3,670, code #5060 - $1,330, and code #8070 - $1,240