Record the 4 adjusting entries for the problem below.

2-48 During 2015, Lisa Cutter and Jeff McMullen decided they would like to start their own gourmet hamburger business. Lisa and Jeff believed that the public would love the recipes used by Lisas mom, Tina Wood brook. They also thought that they had the necessary experience to enter this business, as Jeff currently owned a fast-food franchise business while Lisa had experience operating a small bakery. After doing their own market research, they established Slatterys Inc., which was incorporated on February 1, 2016. The companys address is 5432 Partridge Pl., Tulsa, Oklahoma 74105 and its employer identification number is 88-7654321. The company started modestly. After refurbishing an old gas station that it had purchased, the company opened for business on February 25, 2016. Shortly after business began, however, business boomed. By the close of 2016, the company had established two other locations. Slatterys has three shareholders who own stock as follows: Shareholder Shares Lisa Cutter 500 Jeff McMullen 200 Tina Wood brook (Lisas mother) 300 Total outstanding 1,000 Slatterys was formed on February 1, 2016. On that date, shareholders made contributions as follows: Lisa Cutter contributed $30,000 in cash and 200 shares of MND stock, a publicly held company, which had a fair market value of $20,000. Lisa had purchased the MND stock on October 3, 2011 for $8,000. Jeff McMullen contributed equipment worth $20,000 which he had used in his own business until he contributed it. The equipments basis was $48,000 (original cost in February 2016, $100,000; depreciation using MACRS accelerated percentages for five-year property, $52,000). Tina Wood brook contributed $30,000 in cash. The company is on the accrual basis and has chosen to use the calendar year for tax purposes. The corporations adjusted trial balance for financial accounting purposes reveals the following information: Debit Credit Cash $229,200 Ending inventory 0 Equipment 35,000 Land 10,000 Building 15,000 Improvements to building 55,000 Accumulated depreciation 9,000 Notes payable 93,000 Accounts payable 45,000 Taxes payable 8,000 Salaries payable 20,000 Capital stock 100,000 Sales 600,000 Gains on sale of MND stock 18,000 Dividend on MND corporation 2,000 Legal expenses 5,500 Accounting expenses 3000 Miscellaneous expenses 2,100 Premium on key employee insurance policy 800 Advertising 8,600 Purchases 3 00,000 State income taxes 8,000 Federal income taxes 48,000 Payroll taxes 12,500 Salary expenses 120,000 Insurance 9,000 Repairs 6,500 Charitable contribution 17,600 Depreciation per book 9,000 Interest expense 600 The company has provided additional information below: The company took a physical count of inventory on December 31, 2016. On that date, it was determined that ending inventory was $16,000. This ending inventory must be recorded on the companys books and will result in a reduction in cost of goods sold. On February 9, 2016, the corporation purchased an old gas station for $25,000 to house the restaurant. Of the $25,000 purchase price, $10,000 was allocated to the land while $15,000 was allocated to the building. Prior to opening, the old gas station was renovated. Improvements to the structure were made during February at a cost of $55,000. Assume the building and improvements are 39-year property. The MND stock was sold for $38,000 on April 3, 2016. Shortly before the sale, MND had declared and paid a dividend. Slatterys received $2,000 on April 1, 2016. MND was incorporated in Delaware. The corporation purchased refrigeration equipment (7-year property) on February 15,2016 for $15,000(ignore bonus depreciation) Slatterys has elected not to use the limited expensing provisions of code Sec.179. In addition, it claimed the maximum depreciation with respect to all other assets. Any other election required to minimize the corporation tax liability were made. Lisa Cutter (Social Security no. 444-33-2222) is president of the corporation and spends 90 percent of her working time in the business. Salary expense includes her salary of $60,000 and an accrued bonus to her as of December 31 of $15,000. No other officers received compensation. The key employee life insurance policy covers Lisas life and the corporation is the beneficiary. The company paid estimated income taxes during the year of $48,000 ($12,000 on each installment due date). For simplicitys sake, in completing the tax return do not adjust the books to reflect the actual tax due.