Part 2-8

Part 2-9 prepare adjusting entries

BE 2-8 Income determination 102-4 If none of the adjusting journal entries prepared in BE 2-7 were re holders' equity on the 12/31/18 balance sheet be higher or lower and by how much? recorded, would assets, liabilities, and share- BE 2-9 Prepare the necessary adjusting entries for Johnstone Controls at the end of its December 31, 2018, fiscal year- end for each of the following situations. No adjusting entries were recorded during the year. Adjusting entries LO2-5 1. On March 31, 2018, the company lent $50,000 to another company. A note was signed with principal and 2. On September 3. Supplies on hand at the end of 2017 totaled $3,000. Additional supplies costing $5,000 were purchased 4. Vacation pay of $6,000 for the year that had been earned by employees was not paid or recorded. The com- interest at 6% payable on March 31, 2019. 30,2018, to September 30, 2019. during 2018 and debited to the supplies account. At the end of 2018, supplies costing $4,200 remain on 30, 2018, the company paid its landlord $ 12,000 representing rent for the period September hand. pany records vacation pay as salaries and wages expense