The following activity is to be used to prepare your adjusting journal entries for your company.

This is the first fiscal year end for your company as they just started in business this year. The date

is December $31,2023.$ You have not prepared any interim financial statements since you posted

your transactions in the month of December therefore this is the first time you will be making

adjusting journal entries. You may need to add new accounts accoupling.

Disregard any information on the original transaction other than the date used to

record the transaction and the amount you used.

We are using new information as follows:

$1.$ The rental equipment you purchased on Dec $1$st is being depreciated by the

straight$-$line method over a period of ten years and was given a salvage value of

$$10,000..$

$2.$ The advance rent payment you made on December $1$ covered a period of six

months. $.$

$3.$ After taking a physical count of the office supplies you find you have $$540$ worth

of supplies on hand on December $31$

$4.$ You find that you rendered services to McNamer construction company in the

amount of $$6,000,$ McNamer Construction gave you an advance of $$8,900$ on

Dec $8$th$.$

$5.$ The annual interest rate on the note payable to Rent$-$It is $8$ percent.

$6.$ The backhoe rented to Mission Landscaping on December $26$ at $$400$ a day was

returned to you after Mission Landscaping used the backhoe for $5$ days.

$7.$ Salaries earned by employees since the last payroll date $($December $26)$

amounted to $$1,200.$

$8.$ The bookkeeper informed you that she forgot to pay the utility bill for December

in the amount of $$400.$

$9.$ You received a letter from your bank informing you they charged your account in

December for a serviced fee of $$25.$

$10.$ Your company is subject to a combined federal and state income tax rate of $40$

percent. Do not make this adjusting entry until your worksheet is completed,

then after you know the income make the entry and post it to your worksheet.