Required:

On the basis of the above information, prepare journal entries to record whatever adjustments are necessary to bring the accounts up to date on December 31. Please include the dates and formulas.

The following are several transactions of Ardery Company that occurred during the current year and were recorded in permanent (that is, balance sheet) accounts unless indicated otherwise: Date Transaction Purchased a delivery van for $16,000, paying $1,000 down, and issuing a 1-year, 6% note payable for Apr. 1 the $15,000 balance. It is estimated that the van has a 4-year life and an $800 residual value; the company uses straight-line depreciation. The interest on the note will be paid on the maturity date. Purchased $800 of office supplies. May 15 Purchased a 2-year comprehensive insurance policy for $1,200. June 2 Received 6 months' rent in advance at $300 per month and recorded the $1,800 receipt as Rent Aug. 1 Revenue. Advanced $600 to sales personnel to cover their future travel costs. Sept. 15 Accepted a $6,000, 6-month, 10% (annual rate) note receivable from a customer, the interest to be Nov. 1 collected when the note is collected. The following information also is available: 1. On January 1, the Office Supplies account had a $250 balance. On December 31, an inventory count showed $180 of office supplies on hand. 2. The weekly (5-day) payroll of Ardery Company amounts to $2,000. All employees are paid at the close of business each Wednesday. A 2-day accrual is required for the current year. 3. Sales personnel travel cost reports indicate that $500 of advances had been used to pay travel expenses. 4. The income tax rate is 30% on current income and is payable in the first quarter of next year. The pretax income before the adjusting entries is $8,655 ACCOUNT TITLE DEBIT CREDIT DATE POST. REF Adjusting Entries 1 Depreciation Expense Jan. 1 2,850.00 2 Accumulated Depreciation 2,850.00 3 May 15 Office Supplies Expense 870.00 4 Office Supplies 870.00 5 May 15 Insurance Expense 350.00 6 Prepaid Insurance 350.00 May 15 Rent Revenue 300.00 Unearned Rent 300.00 9 May 15 Selling Expenses 500.00 10 Advances to Sales Personnel 500.00 11 May 15 Interest Receivable 100.00 Interest Income 100.00 13 Interest Expense May 15 675.00 14 Interest Payable 675.00 15 May 15 800.00 Salaries Expense 16 Salaries Payable 800.00 17 Income Tax Expense May 15 1,593.00 18 Income Taxes Payable 1,593.00 19 co