Read through each situation below and on the following pages. After completing any necessary calculations prepare the required adjusting journal entry. When preparing the adiusting journal entries, use the account titles from the trial balance or the general ledger. Post each of the entries below to the trial balance and calculate the adjusted account balances. A one year insurance policy was purchased on August 31 for a premium of $18,000. In the space below show your calculations to receive full credit. Complete the required year-end (December 31,2021 ) adjusting entry below. The company's omployees are paid weokly and it is open for business Monday through Friday each week. The employees have been paid through Friday December 24, 2021. The total payroll for all employees is $850 per day and they are paid for all holidays that fall on normal working days. In the space below show your calculation of the amount due to receive full credit. Record the adjustment to accrue the salary expense through December 31 (ignore the offect of any related payroll taxes). Post the above entry to the trial balance in the adjustment columns. The company takes a physical inventory count at the end of the year and adjusts their inventory and cost of goods sold if there is a difference between the inventory value determined from the actual count compared to the value in the general ledger. Use the information below to prepare the adjusting journal entry for inventory. Number of units held in the company's inventory at 12/31/2021 based on a physical inventory count: 17,728 The company uses FIFO to account for its inventory cost. A listing of purchases during the month of December are as follows: Show your calculation below for full credit. Round to the nearest dollar. What is the cost of the company's ending inventory? 73,730 The balance in inventory per the unadjusted trial balance before making any adjustments is: $76,730 What is the amount of the December 31 adjustment to inventory cost? Complete below the adjusting journal entry necessary for inventory: Post the above entry to the trial balance in the adjustment columns. The company has estimated, based on historical information, that 4.15% of its accounts receivable will ultimately not be collected. Therefore, they provide an allowance for bad debts at that level. Calculate the estimated amount for the allowance at December 31, 2021 and prepare the adjusting joumal entry needed. Accounts receivable balance per the unadjusted trial balance Estimated allowance amount (Round answer to the nearest dollar and show your calculation below for full credit). Amount of adjustment needed to the allowance account (Show your calculation below to receive full credit). Complete below the adjusting journal entry necessary for the allowance for bad debts: Post the above entry to the trial balance in the adjustment columns. On July 31, 2021 the company purchased new warehouse equipment in the amount of $56,500. No depreciation has been recorded yet in 2021 for this new asset. It is estimated to have a useful life of 7 years and a salvage value of $7,500. What is the depreciation expense for 2021 using the straight-line method? (Round answer to the nearest dollar and show your calculation below for full credit). (56,5007,500)/75/12=$2,917 Complete below the adjusting journal entry necessary for depreciation: \begin{tabular}{|l|c|r|} \hline \multicolumn{1}{|c|}{ Account description } & Debit & Credit \\ \hline Depreciation Expenses & $ & 2.917 \\ \hline Accumulated Depreciation- Equipment & & 2,917 \\ \hline \end{tabular} Post the above entry to the trial balance in the adjustment columns. The company issued a $90,000 bond dated August 1, 2021 to finance the purchase of warehouse equipment and provide the company additional cash. The bond has a contractual interest rate of 8.8% and was issued at par. The bond matures in 10 years and pays interest on July 31 and January 31 each year. Use the 360 days convention. What is the amount of interest to be accrued at December 31, 2021? (Round answer to nearest dollar and show your calculation below for full credit). $90,0008.8%5/12 Complete below the adjusting journal entry necessary for accrued interest: \begin{tabular}{|l|c|r|r|} \hline & Account description & Debit & Credit \\ \hline Interest Expense & $ & 3,300 & \\ \hline Interest Payable & $,300 \\ \hline \end{tabular} Post the above entry to the trial balance in the adjustment columns. ACME Distribution, Inc. Income Statement For the Years Ended December 31, 2021 and 2020 ACME Distribution, Inc. Statement of Stockholders' Equity ACME Distribution, Inc. Balance Sheet As of December 31, 2021 and 2020 \begin{tabular}{c} December 31, \\ \hline 2021 \\ \hline \end{tabular} Assets Current Assets \begin{tabular}{lrr} & $ & 34,620 \\ \hline Cash & 24,876 \\ \hline Accounts recelvable & (300) \\ \hline Allowance for bad debts & 24,576 \\ Accounts receivable-net of allowance & 66,934 \\ Irventory & 200 \\ Supplies & 10,700 \\ Prepaid insurance & 2,600 \\ \hline Prepaid rent & 139,430 \\ \hline Total current Assets & \end{tabular} Property, plant and equipment Office equipment Warehouse equipment Less accumulated Depreciation Net property, plant and equipment Total Assets Liabilities Current liabilities Accounts Payable Salaries Payable Interest Payable Unearned revenue Total current liabilities Long-term liability Bond Payable Total liabilities \begin{tabular}{|r|r|} \hline & 0 \\ \hline & 15.920 \\ \hline \end{tabular} Stockholders' Equity Common stock, $10 par value, 100,000 shares authorized. 170 and 120 shares issued and outstanding. Additional paid-in capital Retained earnings Total equity Total liabilities and equity \begin{tabular}{|rr|r|r|} \hline & 1,200 \\ \hline & & 900 \\ & & 162,410 \\ \hline & & 164,510 \\ \hline & 5 & 180,430 \\ \hline \end{tabular} After completing the financial statements (income statement, statement of stockholders equity and balance sheet) prepare the entries to close the books at the end of 2021 in preparation of beginning the 2022 accounting year. After preparing the closing entrios post them to the trial balance in the closing entries columns and then complete the post-closing columns. Entry to close the income summary account: 3) Entry to close the income summary account: \begin{tabular}{|l|l|l|} \hline Account description & Debit & Credit \\ \hline & & \\ \hline & & \\ \hline \end{tabular} 4) Entry to close the dividends account: \begin{tabular}{|c|c|c|} \hline Account description & Debit & Credit \\ \hline. & & \\ \hline \end{tabular}