Question $3$:

A review of the ledgers of KPS traders at December $31,2008,$ produces the following data

pertaining to the preparation of the annual adjusting entries:

a$.$ Prepaid insurance Tk$\mathrm{.}9,900.$ The company has separate insurance policies on its

buildings and its motor vehicles. Policy B$4564$ on the building was purchased on April $1,$

$2007,$ for Tk$\mathrm{.}7,200.$ The policy has a term of $3$ years. Policy A$2958$ on the motor vehicles

was purchased on January $1,2008,$ for Tk$\mathrm{.}4500.$ This policy has a term of $2$ years.

b$.$ Unearned subscriptions Tk$\mathrm{.}45,000.$ The company began selling magazine subscriptions

in $2008$ on an annual basis. The magazine is published monthly. The selling price of a

subscription is Tk$\mathrm{.}45.$ A review of subscription contracts reveals the following:

Subscription Date No$.$ of Subscriptions

October $1$: $200$

November $1$: $300$

December $1$: $500$

c$.$ Notes payable Tk$\mathrm{.}100,000.$ This balance consists of a note for $9$ months at an annual

interest rate of $9\%,$ dated November $1.$

d$.$ Salaries payable Tk$\mathrm{.}0.$ There were eight salaried employees. Salaries are paid every

Friday for the current week. Five employees receive salary of Tk$\mathrm{.}700$ each per week, and

three employees earn Tk$\mathrm{.}500$ per week. December $31$ is a Tuesday. Employees do not

work weekends. All employees worked the last $2$ days of December.

Requirement: Write the adjusting entries.