Presented below is a list of unadjusted account balances as of November 30, 2019 for The Mended Hearts, an organization that provides counseling services to patients after undergoing heart bypass surgery.

The Mended Hearts

Unadjusted Balances

November 30, 2019

Accounts Receivable................................................... 7,100

Note Payable............................................... 18,000

Counseling and Admin. Salary Expense..................... 5,500

Misc. Expense............................................................. 3,000

Accumulated Depreciation-Furniture............................. 585

Interest Payable................................................360

Accounts Payable........................................................ 9,800

Unearned Revenue......................................... 2,000

Contributed Capital................................................... 10,000

Investment in Certificate of Deposit......................... 24,000

Retained Earnings..................................................... 39,300

Counseling Revenue.................................................. 11,000

Rent Expense............................................................... 2,400

Office Furniture........................................................... 7,220

Cash.......................................................................... 40,655

Insurance Expense....................................................... 1,200

REQUIRED: Prepare adjusting entries based on the information provided below for November 30, 2019. The company prepares financial statements on a MONTHLY BASIS. Each item below REQUIRES an adjusting journal entry. THERE ARE NO HIDDEN AJES.

A.Of the Unearned Revenue, 40% of the work had not been performed as of November 30.

B. The Office Furniture has an estimated three-year useful life and $200 residual value.

C. Counselors have to work a seven day week. The weekly payroll of $700 is prepared each Friday and employees are paid at the end of this work day. The wages are earned evenly over the seven days. November 30, 2019 falls on Thursday.

D. On November 1, 2019, The Mended Hearts paid $2400 cash for the twelve month rental of office space in advance of occupying the space. The twelve month rental period began on November 1, 2019. Upon payment, The Mended Hearts recorded a debit to Rent Expense.

E. The note payable was borrowed on 9/1/19. The annual interest rate is 12% with total interest due to the lender when the loan is due on 9/1/21.

F. The Mended Hearts had some extra cash on hand and decided to make an investment in a certificate of deposit on 11/1/19, rather than simply placing these funds in a regular savings account. The certificate will earn interest at an annual rate of 8%. All interest will be received from the bank on the date the certificate of deposit matures, 11/1/20.