Problem 8 - Adjusting entry problem End of the Year 2010 Prepare adjusting entries for a company that prepares statements once per year on Dec. 31. 1. A $5000, 120 day loan was taken out at the bank on October 2, 2010. Interest on the loan is accrued at 6%. 2. The building was purchased June 1, 2008 for $100,000. At that time management assigned it a 20 year life and a $20,000 salvage value. 3. Insurance on the building of $4,800 was paid March 1, 2010 for a two-year period. 4. Revenue earned but not recorded at the end of the year is $5,000. 5. On Nov. 1, 2010, a client had paid $3000 in advance to have work done for 3 months. The work for November and December is completed. 6. A staff member counted the office supplies and found that there were $300 worth of supplies left on Dec. 31. On January 1, 2010 supplies costing $600 were on hand. An additional $1100 worth of supplies were purchased during 2010. 7. Employees are owed $3500 in salaries and wages at the end of the year. 8. Income taxes are calculated to be $1900. This amount is due on March 15, 2011. Cloring entry nrastise