Problem 3-78 Adjusting entries (annual) LO4 Kazz Industries' year-end is May 31. Based on an analysis...

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Problem 3-78 Adjusting entries (annual) LO4 Kazz Industries' year-end is May 31. Based on an analysis of the unadjusted trial balance at May 31, 2020, the following information was available: a. Machinery costing $77,500 was acquired on September 1 of this accounting period. It is estimated to have a useful life of six years. The machinery is estimated to have a $5,500 value at the end of its six-year life. b. Accrued revenues at year-end totalled $24,300. c. The Prepaid Insurance account showed a balance of $23,040. This was paid and takes effect on March 1 of this accounting period and represents a two-year policy. d. Accrued salaries at year-end were $21,500. e. One month of interest had accrued at a rate of 3.5% on the $144,000 note payable. f. The annual depreciation on the office equipment was $8,100. g. $6,480 worth of advertising was prepaid on January 1 of the current accounting period and debited to the Prepaid Advertising account. This covered four months of advertising beginning on the same date. h. It was determined that $4,500 of completed work was included in the $9.200 Unearned Revenue account balance at year-end. i. Interest income accrued at year-end totalled $570. j. The Office Supplies account had a balance of $4,000 at the beginning of the accounting period. During the year, $29.500 of supplies were purchased and debited to the Office Supplies account. At year-end, a count C 1. It was determica mat $500 or completed work was microded in the 37,200 Unearned Revenue account balance at year-end. i. Interest income accrued at year-end totalled $570. j. The Office Supplies account had a balance of $4,000 at the beginning of the accounting period. During the year, $29,500 of supplies were purchased and debited to the Office Supplies account. At year-end, a count of the supplies revealed that $28,400 had been used. Required Prepare adjusting journal entries for the year ended May 31, 2020, based on the above. Problem 3-78 Adjusting entries (annual) LO4 Kazz Industries' year-end is May 31. Based on an analysis of the unadjusted trial balance at May 31, 2020, the following information was available: a. Machinery costing $77,500 was acquired on September 1 of this accounting period. It is estimated to have a useful life of six years. The machinery is estimated to have a $5,500 value at the end of its six-year life. b. Accrued revenues at year-end totalled $24,300. c. The Prepaid Insurance account showed a balance of $23,040. This was paid and takes effect on March 1 of this accounting period and represents a two-year policy. d. Accrued salaries at year-end were $21,500. e. One month of interest had accrued at a rate of 3.5% on the $144,000 note payable. f. The annual depreciation on the office equipment was $8,100. g. $6,480 worth of advertising was prepaid on January 1 of the current accounting period and debited to the Prepaid Advertising account. This covered four months of advertising beginning on the same date. h. It was determined that $4,500 of completed work was included in the $9.200 Unearned Revenue account balance at year-end. i. Interest income accrued at year-end totalled $570. j. The Office Supplies account had a balance of $4,000 at the beginning of the accounting period. During the year, $29.500 of supplies were purchased and debited to the Office Supplies account. At year-end, a count C 1. It was determica mat $500 or completed work was microded in the 37,200 Unearned Revenue account balance at year-end. i. Interest income accrued at year-end totalled $570. j. The Office Supplies account had a balance of $4,000 at the beginning of the accounting period. During the year, $29,500 of supplies were purchased and debited to the Office Supplies account. At year-end, a count of the supplies revealed that $28,400 had been used. Required Prepare adjusting journal entries for the year ended May 31, 2020, based on the above.