Rowe Inc. has been in operations for approximately 5 years. It is a private company, so the company prepares financial statements once a year. The company has no plans in the near future to go public. See the excel file for the trial balance.

The company has a two year insurance policy that was taken out on May 1^st, 2022.

On August 1st Rowe Inc. converted a customer that owed $50 from an accounts receivable to a notes receivable. Rowe Inc. borrows funds at 4% and the customer borrows funds at 5%

The company wrote off a customer for $10. The company estimates that 4% of the ending accounts receivable balance will not be collected.

The building was purchased 5 years ago. It has an estimated useful life of 20 years and a residual value of $20.

During the year the company purchased $2 in supplies. This has already been recorded. At the end of the year it was determined that there are $4 in supplies.

The company stopped business and physically counted inventory. Their inventory count at the end of the year was $202.

On October 1^st Rowe Inc. collected money in advance from Zinc Inc. to provide consulting services over the next 8 months. The work will be done evenly over the contract.

Employees are paid every Monday for the previous work week. They work Monday to Friday. There are 3 employees and they each make $10 per week. This year December 31^stis on Saturday.

Prepare any necessary journal entries and adjusting entries for December 31^st, 2022.