The following are adjusting entries and are NOT included in the trial balance.

1. Note Receivable ($20,000; 10%) was issued on July 1. Principle and Interest Payable

June 30 of current year. Record interest.

(entry)

2. Fair Value of Investments was $105,000 as of December 31. Record the adjusting

entry.

(Entry)

3. Minions report a balance of $4,900 of supplies remain in inventory. Record the

adjusting entry.

(entry)

On January 1, almost three years ago,, Omega purchased equipment for $200,000. At

that time, it was estimated that the equipment would have a useful life of four years, and

have a salvage value of $40,000. As of this date, two years of depreciation has accrued.

Omega reevaluates their estimate and determines that rather than the four year useful life

initially estimated, they now expect the equipment to last a total of seven years with no

salvage value. Depreciation on the remaining equipment is 20,000. Prepare the journal

entry for equipment depreciation.

(entries)

5. Building depreciation is $18,000.