Record the following adjustments on journal entries in the General Journal, include account title, debits, credits

1. Wages earned by employees during the last half of December and to be paid on January 1, were $12,400 and salaries to officers were $15,000. Associated payroll taxes on these wages and salaries were $2,810.

2. Of the Deferred Revenue account, 5% have now been earned.

3. Uncollectible accounts are estimated to be 4% of ending Accounts Receivable. (round your answer to the nearest whole dollar.)

4. Desert prepays for some insurance and advertising. The prepaid expense account has a balance of $26,774 at year end, but before adjustment. This balance includes $12,240 for an 18-month casualty insurance policy purchased on March 1, 2019. Of the remaining prepaid balance, 60% of the advertising has now been used. (round to the nearest whole dollar.)

5. Desert records depreciation & amortization on limited life tangible & intangible assets on a monthly basis using the straight-line method. (*refer to the footnotes for more details on original cost, salvage value and useful lives.)

6. Desert discovers that a cash purchase of new gym equipment on May 1, 2017 for $70,000 was mistakenly recorded as Miscellaneous Expense. The equipment has a 7 year useful life and 10% salvage value. Desert uses the straight-line method to depreciate equipment. Record the journal entry to correct the error.

7. The long-term liabilities were outstanding for all of 2019 and accrue interest at 6% APR. Desert records accrued interest on long-term debt quarterly (interest was last updated on Sept. 30.) The company is required to pay the interest annually each January 1st. Desert also accrued interest on short-term notes payable.

8. At the end of December, a physical count was taken of Deserts inventories & supplies. It revealed the following information:

   a. Inventories Apparel: there were 1,310 units of apparel (t-shirts, tanks and hoodies) on hand at year end with an original cost of $17,420.

b. Office Supplies: There was $780 of Office Supplies on hand as of December 31st

9. Desert received notice that accrued interest on the long-term investment had been sent and the check should arrive in early January, 2020. At December 31, the Long-Term Investment (Available for Sale Securities) had a fair value of $204,700. Deserts tax rate is 30%. (record as two separate AJEs)

10. Income tax is based on a 30% tax rate.

ADJUSTMENTS DR CLOSING ENTRIES DR CR CR ADJ. TRIAL BALANCE D B CR 384,494 252,760 9,839 AFTER CLOSING TB DR CR 384,494 252,760 9,839 18,164 1.540 26,774 18,164 1,540 26,774 200,000 200.000 162,564 605,000 162,564 605,000 85,305 85,305 982,320 982,320 272,927 272,927 123.000 123,000 4,051 4,051 11,482 268,620 27,833 38,400 179,600 11,482 268,620 27.833 38,400 179,600 TRIAL BALANCE ACCOUNT DR CR CASH & CASH EQUIVALENTS 384,494 ACCOUNTS RECEIVABLE 252,760 ALLOWANCE FOR DOUBTFUL ACCOUNTS 9.839 INTEREST RECEIVABLE INVENTORY - APPAREL 18.164 OFFICE SUPPLIES 1,540 9 PREPAID EXPENSES 26,774 INVESTMENT-AVAILABLE FOR SALE SECURITIES 200.000 FAIR VALUE ADJUSTMENT LAND 162,564 BUILDING 605,000 ACCUMULATED DEPRECIATION - BUILDING 85,305 EQUIPMENT 982,320 ACCUMULATED DEPRECIATION - EQUIPMENT 272,927 17 PATENT 123,000 ACCOUNTS PAYABLE 4,051 SALARY & WAGES PAYABLE PAYROLL TAXES PAYABLE 11,482 21 DEFERRED REVENUES 268,620 22 INTEREST PAYABLE 27,833 DIVIDEND PAYABLE 38,400 24 NOTES PAYABLE-SHORT-TERM 179.600 25 INCOME TAXES PAYABLE NOTES PAYABLE-LONG-TERM 618.500 COMMON STOCK 320.000 ADDITIONAL PAID IN CAPITAL 278,356 RETAINED EARNINGS 218,787 DIVIDENDS 38,400 31 ACCUMULATED OTHER COMPREHENSIVE INCOMIE 32 SERVICE REVENUE 1,476,284 SALES REVENUE 181,525 COST OF GOODS SOLD 88.070 ADVERTISING EXPENSE 19.080 36 BAD DEBT EXPENSE 2.170 37 DEPRECIATION & AMORTIZATION EXPENSE 135.644 INSURANCE EXPENSE 40,144 LEGAL & ACCOUNTING 23.200 OFFICE & SUPPLIES EXPENSE 10.864 PAYROLL TAX EXPENSE 53.969 PROPERTY TAX EXPENSE 54.570 REPAIRS & MAINTENANCE 16,028 TELEPHONE 8.441 UTILITIES 42,799 WAGES - EMPLOYEES 393,870 SALARIES-OFFICERS 280,431 INTEREST EXPENSE 27.833 49 GAIN (LOSS) ON DISPOSAL OF ASSETS 620 INTEREST REVENUE 51 INCOME TAX EXPENSE 52 UNREALIZED GAIN/LOSS - AFS 53 INCOME SUMMARY 54 T rial Balance Totals 3,992, 1293.992.129 618.500 320.000 278,356 218,787 618,500 320,000 278,356 218,787 30 38,400 38,400 1,476,284 181,525 1,476,284 181,525 88.070 19.080 2,170 135,644 40.144 23,200 10.864 53,969 54.570 16.028 8.441 42.799 393.870 280,431 27,833 86.070 19.080 2.170 135,644 40.144 23,200 10.864 53,969 54.570 16.028 8.441 42,799 393.870 280.431 27,833 620 620 010 3,992, 1293,992.129 0 10 3 ,992,129 3,992, 129 ADJUSTMENTS DR CLOSING ENTRIES DR CR CR ADJ. TRIAL BALANCE D B CR 384,494 252,760 9,839 AFTER CLOSING TB DR CR 384,494 252,760 9,839 18,164 1.540 26,774 18,164 1,540 26,774 200,000 200.000 162,564 605,000 162,564 605,000 85,305 85,305 982,320 982,320 272,927 272,927 123.000 123,000 4,051 4,051 11,482 268,620 27,833 38,400 179,600 11,482 268,620 27.833 38,400 179,600 TRIAL BALANCE ACCOUNT DR CR CASH & CASH EQUIVALENTS 384,494 ACCOUNTS RECEIVABLE 252,760 ALLOWANCE FOR DOUBTFUL ACCOUNTS 9.839 INTEREST RECEIVABLE INVENTORY - APPAREL 18.164 OFFICE SUPPLIES 1,540 9 PREPAID EXPENSES 26,774 INVESTMENT-AVAILABLE FOR SALE SECURITIES 200.000 FAIR VALUE ADJUSTMENT LAND 162,564 BUILDING 605,000 ACCUMULATED DEPRECIATION - BUILDING 85,305 EQUIPMENT 982,320 ACCUMULATED DEPRECIATION - EQUIPMENT 272,927 17 PATENT 123,000 ACCOUNTS PAYABLE 4,051 SALARY & WAGES PAYABLE PAYROLL TAXES PAYABLE 11,482 21 DEFERRED REVENUES 268,620 22 INTEREST PAYABLE 27,833 DIVIDEND PAYABLE 38,400 24 NOTES PAYABLE-SHORT-TERM 179.600 25 INCOME TAXES PAYABLE NOTES PAYABLE-LONG-TERM 618.500 COMMON STOCK 320.000 ADDITIONAL PAID IN CAPITAL 278,356 RETAINED EARNINGS 218,787 DIVIDENDS 38,400 31 ACCUMULATED OTHER COMPREHENSIVE INCOMIE 32 SERVICE REVENUE 1,476,284 SALES REVENUE 181,525 COST OF GOODS SOLD 88.070 ADVERTISING EXPENSE 19.080 36 BAD DEBT EXPENSE 2.170 37 DEPRECIATION & AMORTIZATION EXPENSE 135.644 INSURANCE EXPENSE 40,144 LEGAL & ACCOUNTING 23.200 OFFICE & SUPPLIES EXPENSE 10.864 PAYROLL TAX EXPENSE 53.969 PROPERTY TAX EXPENSE 54.570 REPAIRS & MAINTENANCE 16,028 TELEPHONE 8.441 UTILITIES 42,799 WAGES - EMPLOYEES 393,870 SALARIES-OFFICERS 280,431 INTEREST EXPENSE 27.833 49 GAIN (LOSS) ON DISPOSAL OF ASSETS 620 INTEREST REVENUE 51 INCOME TAX EXPENSE 52 UNREALIZED GAIN/LOSS - AFS 53 INCOME SUMMARY 54 T rial Balance Totals 3,992, 1293.992.129 618.500 320.000 278,356 218,787 618,500 320,000 278,356 218,787 30 38,400 38,400 1,476,284 181,525 1,476,284 181,525 88.070 19.080 2,170 135,644 40.144 23,200 10.864 53,969 54.570 16.028 8.441 42.799 393.870 280,431 27,833 86.070 19.080 2.170 135,644 40.144 23,200 10.864 53,969 54.570 16.028 8.441 42,799 393.870 280.431 27,833 620 620 010 3,992, 1293,992.129 0 10 3 ,992,129 3,992, 129