(PICTURE IS OF JOURNAL ENTRY FROM PART 1 THAT MAY HAVE TO BE ENTERED TO THIS QUESTION AS WELL)

This project is an extension of Part 1, so just like in the real world the previous transactions do not go away. Review your transaction analysis, journal entries, T-Account postings and Trial Balance for accuracy. You start from where that part ended and add this information.

The following transactions are adjusting entries that need to be booked as of June 30, 20XX:

1. The money borrowed on June 2 is an interest-only loan with a 10 percent interest rate. The interest accrues each month even though it is only paid quarterly with the first payment not due until September 2, 20xx. Compute interest on a monthly basis not by number of days.

2. The building has no salvage value and is depreciated on a straight-line basis over 30 years. The equipment has no salvage value and is depreciated on a straight-line basis over 10 years.

3. One month of insurance coverage has expired. Assume an entire months worth of insurance has expired not only the number of days between payment and end of June.

4. There is $8,500 of inventory left in storage at the end of the month and there was no inventory used for internal purposes.

5. The last payday was June 28^th (employees were paid for working that day). Wages accrue at $200 per day.

Required:

1. Prepare adjusting entries in good form based on the above information. Create separate adjusting journal entries from your part 1 journal entries.

ID: 2134 1. Journals June 1, 20XX $1,067,000 $1,067,000 June 2, 20XX S206,700 $206,700 June 2, 20XX $25,608 $25,608 June 2, 20XX $320,100 $320,100 June 3, 20XX $106.700 $106,700 June 4, 20XX $24.000 $24,000 June 5, 20XX SI0.000 $10,000 June 5, 20XX $20.000 Cash Common Stock Cash Note Payable Land Cash Buikling Cash Equipment Accounts Payable Prepaid Insurance Cash Inventory Accounts Payable Cash Service Revenue Accounts Receivable Consulting Revenue Advertising Cash Utilities Cash Cash Advance Deposits Repairs & Maintenance Cash Wages Expense Cash Dividends Cash $20,000 June 6, 20XX $10.000 $10.000 June 10, 20XX $1,500 $1,500 June 15, 20XX S2.000 $2,000 June 18, 20XX SSOD $500 June 22, 20XX SI 800 $1,800 June 28, 20XX $4.000 $4,000 June 30, 20XX S500 S500