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The following information is available for Drake Company, which adjusts and closes its accounts every Docember 31 : 1. Salaries accrued but unpaid total $2,840

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The following information is available for Drake Company, which adjusts and closes its accounts every Docember 31 : 1. Salaries accrued but unpaid total $2,840 on December 31 . 2. The $247 December utility bill arrived on December 31 and has not been paid or recorded. 3. Buildings with a cost of $78,000,25-year 1 fe, and $9,000 residual value are to be depreciated; equipment with a cost of $44,000, 8-year life. and $2,000 residual value is also to be depreclated. The straight+line method is to be used. 4. A count of supplies indicates that the Store Supplies account should be reduced by $128 and the Office Supplies account reduced by $397 for supplies used during the year. 5. The company hoids a $6,000,12% (annual rate), 6-month note recelvable dated September 30 , from a customer, The interest is to be collected on the maturity date. 6. Bad debts expense is estimated to be 1% of annual sales. Sales total $65,000. 7. An analysis of the company insurance policies indicates that the Prepaid insurance account is to be reduced tor $528 of expired insurance. 5. The company holds a $6,000,12% (annual rate), 6-month note receivable dated September 30 , from a customer. The interest is to be collected on the maturity date. 6. Bad debts expense is estimated to be 1% of annual sales. Sales total $65,000. 7. An analysis of the company insurance policies indicates that the Prepaid Insurance account is to be reduced for $528 of expired insurance. 8. A review of travel expense reports indicates that $310 has been paid for airfare for a salesperson (and recorded as Travel Expenses), but has not yet been used. 9. The income tax rate is 30% on current income and will be paid in the first quarter of next year. The pretax income of the company before adjustments is $18,270. Required: Joumalize the necessary year-end adjusting entries for Drake

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