The following adjustments need to be made before the financial statements can be prepared at the end of the year. Task 1: Enter the necessary journal entries into the template provided and provide the journal entry for each.

December Interest on a bank loan is due on January 2nd of the following year: accrue $1,000. A contractor (outside services) has finished work on December 31st, but the invoice will not be received until January 7th of the following year: accrue $750. A rent payment was made on December 1st for three months from December 1st to February 28th of the following year (6,000 in total). Record the transaction properly.

The companys part-time employees worked a total of 50 hours in December, but will get paid only by January 5th. The hourly rate is $15. The company must record the payment of its annual insurance premium for next year. The annual premium is $1,200, an adjustment is necessary to prepaid insurance.

Task 2: Provide the adjusted trial balance (combine exercises 2.1 and 2.2 to show the adjusted trial balance). Submission Requirements: Click here to download the template for calculation.

TRIAL BALANCE

Starting Balance

Adjusting Entry 1

Adjusting Entry 2

Adjusting Entry 3

Adjusting Entry 4

Adjusting Entry 5

Adjusted Trial Balance

Debit (+)

Credit (-)

Debit (+)

Credit (-)

Debit (+)

Credit (-)

Debit (+)

Credit (-)

Debit (+)

Credit (-)

Debit (+)

Credit (-)

Debit (+)

Credit (-)

Cash

-

-

Prepaid Rent

-

-

Prepaid Insurance

-

-

Finished Goods

-

-

Receivables

-

-

Machinery and Equipment

-

-

Building

-

-

Common Stock

-

-

Bank Loans

-

-

Accounts Payable

-

-

Interest Payable

-

-

Wages Payable

-

-

Sale of Goods Produced

-

-

Cost of Goods Sold

-

-

Expense for Outside Services

-

-

Wage Expenses

-

-

Rent Expense

-

-

Depreciation

-

-

Insurance Expense

-

-

Interest Expense

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-