Required:

a) Prepare adjusting entries of the nine items below:

1) Wages earned by employees during December and to be paid in January are $33,875; associated payroll taxes on these wages are $2,710.

2) On July 1, a client paid CMC $205,720 in advance for a year of consulting services.

3) You discover that a product sale was made and recorded on December 28 for $128,600; the product had not yet been shipped. The cost of the product was $68,742. Assume A/R was debited when the sale was recorded on December 28.

4) Bad debt expense has been calculated to be $17,508 but has not yet been recorded.

5) The Prepaid Expense account has a balance of $22,774. This balance includes $11,200 for a two-year insurance policy purchased on January 1, 2021.

6) Depreciation expense for the year is $82,620.

7) Interest expense accrued on its long-term liabilities is $7,765.

8) On December 15, CMC declared a dividend of $110,000, to be paid on January 15, 2022.

9) Income tax expense is $201,109.

AJE #

Account Name

DR

CR

Closing Entry #

Account Name

DR

CR

b) Close the temporary accounts

c) Create post-closing trial balance