Preparing Adjusting Journal Entries

Adjusting Journal Entries Part One

Adjusting Journal Entries Part Two

Equipment used in operations cost $$1,176,000$; it was purchased on July $1,$ which was $3\mathrm{.}5$ years before the current December $31$ year$-$end. It has an estimated useful life of $12$ years. Straight$-$line depreciation is

used.

The company estimates an increase in Allowance for Doubtful Accounts of $$8,400$ is required to recognize accounts receivable of $$840,000$ at the net amount expected to be collected.

At the beginning of the year, office supplies amounted to $$1,680.$ During the year, office supplies of $$24,640$ were purchased; this amount was debited to Office Supplies Expense. An inventory of office supplies

at the end of the year showed $$1,120$ still available. However, the January $1$ balance of $$1,680$ is still recorded in the Office Supplies account.

On July $1$ the company paid a three$-$year insurance premium of $$6,048$; this amount was debited to Prepaid Insurance.

On August $1$ the company borrowed $$336,000$ cash from Shar Bank. The loan was for $12$ months at $9\%$ interest payable at maturity date.

On December $31$ salaries earned by employees but not yet paid $($or recorded$)$ was $$50,400.$

Required: Prepare the adjusting entry $($or entries$)$ that are necessary, if any, on December $31,$ for each item $1$ through $6.$

Note: If a journal entry isn't required for the transaction, select $"$N$/$A$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$