) Prepare an Adjusting Journal Entry, if necessary, for each of the items (a) to (f) above. If no Adjusting Journal Entry is required, briefly explain why

No depreciation has been recorded on the business vehicle. It was purchased on January 1, 2014 at a cost of $25,000. He plans to use the vehicle for 5 years at which time the resale value is estimated to be $1,000.

An inventory count indicated $46,000 of inventory at November 30, 2014. Nicknacks uses a perpetual inventory system.

Nicknacks recently signed an agreement with a Dollar Store to supply them with gold and silver charms. The contract is worth $100,000 and will commence in February of 2015. Nicknacks received and cashed a $20,000 cheque from the customer in November 2014 in respect of this contract. The cash receipt was recorded as part of sales revenue.

Nicknacks annual fire insurance policy of $2,400 was paid on April 1, 2014 and was fully expensed at that time.

On June 1, 2014 Nicknacks lent a long-time employee $15,000. She signed a promissory note agreeing to repay the amount on May 31, 2017. The interest rate is 5% per year with interest payable every May 31