Sinnathon for adjusting entries - When calculating the amounts, round all items up to the nearest whole lur. 510.01 - 511 Adjust the accounts for the following items: Round up to the nearest whole dollar Puld fox 12 months of advertising on April ist. Patented an invention on July 1st and was granted a 20-year patent (straight line with -- Salvage value). 3 Bad Debts (Uncollectible Accounts) Expense is estimated to be 2% of Sales Revenue. We purchased the Auto on October ist when it was brand new (o miles). It is estimated to 4 last 5 years, 100,000 miles and then we should be able to sell it for $1,000. We put 15,000 miles on it this year. Use the Units of Product Method for depreciation. We purchased the building on February 1st. It is estimated to last 10 years and then we s should be able to sell it for $5,000. Use the Double Declining Balance Method for depreciation 6 Pald for 6 months of insurance on November 1st. 7 Paid for 12 months of Rent on September ist. 8 There are $500 of wages for Dec 16th-31st that we still owe, but have not paid and have not accrued yet). 9 We counted our supplies and there was $150 of supplies on hand. 10 We counted our inventory and there was $1500 of inventory on hand. 11 We estimate our warranty expense to be 15 of sales. On January 1st of this year, we signed the long-term note payable. The note payable calls for 6% interest and is a 5-year note. Assume that we make $5,000 payments each 12 December 31st. Make the entry to record the payment (both principle and interest). Note that you also need to break out current and long-term Notes Payable amounts for the financial statements. Inherwin for adjusting entries. When the towns, round alles op to the newest whole 10.01 - 511 Adjust the accounts for the following items: Round up to the nearest whole dollar 1 Paid for 12 months of advertising on April 1st. Patented an inventions list and was granted 20 year patent straight line with 2 Salvage value Bad Debts (Uncollectible Accounts) pense is estimated to be of Sales Revenu We purchased the Auto on October ist when it was brand new miles). It is estimated to 4 last years, 100,000 miles and then we should be able to sell it for $1.000. We put 15.000 miles on it this year. Use the Units of Product Method for depreciation. We purchased the building on February 1st. It is estimated to last 10 years and then we should be able to sell it for $5,000. Use the Double Declining Balance Method for depreciation. 6 Paid for 6 months of insurance on November ist. 7 paid for 12 months of Rent on September ist. 8 There are $500 of wages for Dec 16th - 21st that we still owe, but have not paid and have not accrued yet) We counted our supplies and there was $10 of supplies en hand. 10 We counted out inventory and there was $1500 of inventory on hand. 11 we estimate our warranty expense to be 15 of sales On January 1st of this year, we sned the long-term note payable. The note payable calls for os interest and is a 5-year note. Assume that we make $5,000 payments each 12 December 31st. Make the entry to record the payment (both principle and interest). Note that you also need to break out current and long-term Notes Payable amounts for the financial statements
