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Please create the according adjusting entries. nformation necessary to prepare the year-end adjusting entries appears below. 1. Office equipment is depreciated at a rate of
Please create the according adjusting entries.
nformation necessary to prepare the year-end adjusting entries appears below. 1. Office equipment is depreciated at a rate of 10% per year. 2. Employees are paid weekly on Friday, for the previous 5-day work week. Employees were paid on Friday, December 30, for the week ended Friday, December 23rd. 3. On October 1,2022 , Alfredo borrowed $50,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 6%. The principal is due in 10 years. 4. On March 1, 2022, the company lent a supplier $20,000 and a note was signed requiring principal and interest at 5% to be paid February 28,2023. 5. On April 1, 2022 the company paid an insurance company $7,000 for a one-year fire insurance policy. 5. $600 of supplies remained on hand at December 31,2022. 7. The company received \$3,000 from a customer in December for 1,500 pounds of spaghetti to be delivered in January 2023. 3. Management estimates that 5% of receivables will become uncollectible. 9. In March, 2022, the company invested $120,000 in stock of a start-up company. As of December 31,2022 , the investment's fair value is $170,000 The company's stock consists of 60,000 shares of no par value stock. This is the maximum amount of shares authorized. The income tax rate is 21%Step by Step Solution
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