Notes for Journal Entries:

1) Kuechly uses periodic inventory system and LIFO

2) All credit sales discounts are recorded using the net method customers receive a 3 percent discount if they pay within 30 days.

3) Purchase discounts are recorded using the net method

4) All depreciation is straight line.

5) 2020 is first year of operation.

June 30 2020 - Purchased land and a building. A $200,000 cash down payment was required and a $800,000 note was accepted by the seller for the balance (12 percent interest payable each year on June 30). The fair value of the land at the date of purchase was deemed to be 300,000 and the fair value of the building was 900,000. The building has an estimated residual value of $0 and a useful life of 30 years.

October 1 2020 - Purchased equipment for in exchange for a $30,000 non-interest bearing note due in one year. The equipment has an estimated residual value of $2,000 and a useful life of 8 years. Note: Assume an effective interest rate of 8 percent.

What Adjusting Journal Entries should be made at 12/31/2020