Prepare the adjusting journal entries and Post the adjusting journal entries to the T-accounts and adjust the trial balance.

1. Dresser paid the interest due on the Bonds Payable on January 1.
2. Dresser paid $950 of salaries and wages, which includes the amount accrued as of December 31, 2020.
3. Dresser sold 4,000 units of inventory for $15.00 each.
4. Dresser purchased supplies on account for $1,300.
5. Dresser purchased 2,000 units of inventory for $1.60 each.
6. Dresser sold 2,600 units of inventory for $16.00 each.
7. Dresser wrote off as uncollectible the accounts of Barker Corporation ($2,200) and Elm Company ($3,400).
8. Dresser paid the interest due on the Bonds Payable on July 1.
9. Dresser purchased 2,500 units of inventory for $1.62 each.
10. Dresser collected $1,400 from Elm Company, part of the balance previously written off.
11. Dresser paid salaries and wages of $72,000.
12. Dresser paid $6,600 for insurance coverage from May 1, 2021 thru April 30, 2022.
13. Dresser sold 3,500 units of inventory for $16.50 each.
14. Dresser collected $87,800 from customers on account.
15. Dresser purchased 3,800 units of inventory for $1.65 each.
16. Dresser paid $10,300 on accounts payable.
17. Dresser sold 500 units of inventory for $15.50 each as a cash sale.
18. Dresser paid $1,600 selling expenses and $3,850 administrative expenses.
19. Dresser declared and paid $6,000 in dividends to its stockholders.
20. Dresser accepted a $55,000, 6%, 3 year note receivable from a trusted customer for 3,000 units of inventory on October 1. The market rate of interest on Oct. 1 was 5%. Interest is received semiannually on April 1 and Oct. 1

Adjusting Journal Entries:

1. Prepaid insurance expires evenly each month.
2. A count of supplies at year end revealed $480 of supplies on hand.
3. Interest is recorded on the long-term note receivable.
4. Interest is recorded on the Bonds Payable.
5. Depreciation on the equipment is calculated using the sum-of-years-digits method. The salvage value is $2,000, life is 10 years, and 4 years are depreciated as of Dec. 31, 2020.
6. Depreciation on the building is calculated using the straight-line method. The salvage value is $10,000, life is 30 years, and 10 years are depreciated as of Dec. 31, 2020.
7. Salaries and wages payable at year end amounted to $800.
8. Dresser performed an aging analysis of its year end Accounts Receivable as follows:

		0-30 days	31-60 days	days	> 90 days
A/R Balance %	$ (balance)	60%	20%	10%	10%
% Uncollectible		10%	30%	50%	70%

9. Income tax is recorded at $25,946.

Check figures:

Cash ending balance	$ 3,950	Total Unadjusted Trial Balance	$ 423,725
Inventory ending balance	$ 3,795	Total Adjustment columns on Worksheet	$ 63,300
Interest receivable balance	$ 825	Income before income tax	$ 86,488
Accounts receivable balance	$ 81,670	Total Current Assets	$ 73,319
Retained earnings balance	$ 68,067	Total Current Liabilities	$ 41,466