prepare in journal entry form the adjusting journal entries for the following items: A) On September 1, 2017 a 12-month insurance policy was purchased for $18,000 B) On January 1, 2017 H&L paid Brewster Advertising $36,000 for two years of advertising services. Equal services are provided in year 1 and year 2. C) H&L needed some additional storage space so on March 1, 2017 they rented a unit for an annual rate of $12,600. The entire amount was expensed when paid. D) $5,500 of store supplies were purchased during the year and the asset Store Supplies was increased. $4,100 of these supplies were used during the year. E) $6,500 of office supplies were purchased during the year and were immediately expensed. $750 of these supplies remained at the end of 2017. F) On July 1, 2017, H&L issued a 9-month note receivable to Greenstreet & Co. at an annual interest rate of 5.5%. Principle and interest will be paid at the end of the 9-months. The note was recorded as $12,000 in Notes Receivable and is the only note outstanding. G) Depreciation for store equipment is based on the following: Straight line depreciation Store Equipment Assets were held for the entire year; Residual Value = $5,500; Service life is estimated to be 12 years H) Depreciation for office equipment is based on the following: Double-Declining Method Office equipment Assets were purchased May 1; Residual Value = $3,000; Service life is estimated to be 6 years I) Sales salaries of $7,400 and office salaries of $5,200 remained unpaid at 12/31/16. J) On May 1, 2016, H&L rented a portion of one store to Henreid Co. The contract was for 8 months and H&L required the 8 months of cash upfront on October 1. The rent is being earned equally over the next 8 months. When cash was received, unearned rent was appropriately recorded as $20,000. K) The note payable was outstanding the entire year and a 4.25% interest rate exists on the note. No interest has been recorded for the year. L) At 12/31/2017, based on the aging method, H&L determined that uncollectible accounts are $4,300. M) Utilities expenses of $6,800 remained unpaid. 40% of the utilities expense is for office and 60% of utilities expense is for the store.

Tear E Unadjusted Accounts Receivable 77. Allowance for Doubitul Accounts 2.000 Interest Receivable Merchandise Inventory 160 Prepaid Insurance 18,000 Prepaid Advertising 35.000 Note Receivable 112.000 Accumulated Depreciation Office ouipment Accounts Payable 85200 Interest payable Unearned Rent 220.000 Note Payable 50,000 Common Stock 60,000 Retained Earnings 171 150 Sales Discounts 5.400 Cost of Goods sold Sales Salaries Expense 94.550 Advertising Expense Depreciation Expense-store Fouipment Sore Supplies Expense Rent Expense 112.000 Insurance Expense nse Office Eguipment Miscellaneous Administrative Expense 16501 Interest Revenue Interest Expense 1 254 550 1125 4.550 Worksheet (1) Adjusting Journal Entries(2) S(3) Adjusted Statement of RE(4) Balance Sheet (5) Closing Entries(6)