Requirement 1. Joumalize and post the adjusting entries. In the T-accounts, denote each adjusting amount as Adj, and an account balance as Bal. Begin by journalizing the adjusting entries. (Record debits first, then credits. Select the explanation on the last line of the joumal entry table.) a. Office suppliers on hand, $400. Date Accounts and Explanation Debit Credit Dec 31 Adj, a i Reference Nov. 1 Received $20,000 cash to begin the company and issued common stock to Ashley and Zain. 2 Signed a lease for a building and paid $1,500 for the first month's rent. 3 Purchased canoes for $7,680 on account. 4 Purchased office supplies on account, $500. 7 Earned $1,700 cash for rental canoes. 13 Paid $1,600 cash for wages. 15 Paid $400 dividends to stockholders. 16 Received a bill for $120 for utilities. (Use separate payable account.) 20 Received a bill for $130 for cell phone expenses. (Use separate payable account.) 22 Rented canoes to Toddler Town on account, $3,600. 26 Paid $2,000 on account related to the November 3, 2018, purchase. 28 Received $1,400 from Toddler Town for canoe rental on November 22, 2018. 30 Paid $650 dividends to stockholders. Dec. 1 Ashley and Zain contributed land on the river (worth $70,000) and a small building to use as a rental office (worth $104,00) in exchange for common stock. 1 Prepaid $4,500 for three months' rent on the warehouse where the company stores the canoes. 2 Purchased canoes signing a notes payable for $8,160. 4 Purchased office supplies on account for $1,000. 9 Received $5,000 cash for canoe rentals to customers. 15 Rented canoes to customers for $3,600, but will be paid next month. 16 Received a $950 deposit from a canoe rental group that will use the canoes next month. 18 Paid the utilities and telephone bills from last month. 19 Paid various accounts payable, $1,400. 20 Received bills for the telephone ($330) and utilities ($280) which will be paid later. 31 Paid wages of $2,300. 31 Paid cash dividend to stockholders, $700. Print Done a Office supplies on hand, $400 b. Rent of one month has been used. (Hint: See the second Dec. 1 transaction.) c. Determine the depreciation on the building using straight-line depreciation. Assume the useful life of the building is five years and the residual value is $20,000. (Hint: The building was purchased on December 1.) d. $650 of unearned revenue has now been earned. (Assume that the initial unearned revenue was recorded as a liability.) e. The employee who has been working the rental booth has earned $1,400 in wages that will be paid January 15, 2019. f. Calla Canoe has earned $1,000 of canoe rental revenue that has not been recorded or received. g. Determine the depreciation on the canoes purchased on November 3 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0. h. Determine the depreciation on the canoes purchased on December 2 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is so i. Interest expense accrued on the notes payable, $120. Calla Canoe Company Unadjusted Trial Balance December 31, 2018 Icco Balance Inal Account Title Debit Credit Cash $ 13,750 Accounts Receivable 5.800 Office Supplies 1,500 Prepaid Rent 4.500 Canoes 15,840 Land 70,000 104,000 Building Accounts Payable Utilities Payable $ 5.780 280 Telephone Payable 330 Unearned Revenue 950 Canoes 15,840 Land 70,000 104,000 Building Accounts Payable 5,780 Utilities Payable 280 330 Telephone Payable Unearned Revenue 950 Notes Payable 8,160 Common Stock 194,000 Dividends 1,750 Canoe Rental Revenue 13,900 Rent Expense 1,500 3,900 Wages Expense Utilities Expense 400 Telephone Expense 460 Total $ 223,400 $ 223,400