The December 31, 2019, trial balance of Bobs Delivery Service, before adjusting entries, included the following selected accounts. Note: This is a partial trial balance. Many accounts are not shown. All accounts have a normal balance.

Additional data:

The equipment has an estimated life of 10 years, no residual value, and the double declining balance method is used for calculating depreciation.

The prepaid rent was payment for a six-month lease beginning on November 1, 2019.

The prepaid insurance represents the annual premium on a policy providing coverage starting September 1, 2019.

On September 11, 2019, we accepted a $400,000 note from a customer in payment for delivery services. It is a six month note and the interest rate is 5%. You need to count exact days to determine the interest.

The supplies inventory on January 1, 2019 was $8,350. Supplies costing $16,650 were acquired during the year. A count on Dec. 31, 2019, indicated supplies on hand of $4,810.

Required: (3 marks each)

Provide the year end adjusting journal entries for the following situations. Year end is December 31. Some of the marks for this question are based on your properly formatted journal entries that follow the specific instructions in the course guide. Use a Word table for your journal entries. Do these entries in the order they are presented.

Question 4 (15 marks) The December 31, 2019, trial balance of Bob's Delivery Service, before adjusting entries, included the following selected accounts. Note: This is a partial trial balance. Many accounts are not shown. All accounts have a normal balance. Accounts receivable Notes receivable Unearned delivery revenue Prepaid rent Prepaid insurance Equipment Accumulated depreciation: equipment Salaries expense Delivery revenue 176,000 200,000 24,000 36,000 18,000 240,000 61,250 120,000 473,300