The following information pertains to your small business, Bean Counters, Inc. a coffee shop at 400 The Fenway, Boston with a December 31 year-end. Your business, like 90% of businesses in the United States, is privately-held. You chose to incorporate your business as a C Corp and shares of stock are sold privately. At start-up you determined that the accounting course you took in college provided you with enough information that you could handle the books on your own. The unadjusted trial balance for 2018 is presented below.

I. Information Provided for the Necessary Year-End Adjusting Entries

1. 1% of sales revenue is expected to be uncollectible.
2. The prepaid insurance was purchased on January 1, 2018 in order to cover years 2018 and 2019.
3. The prepaid rent was paid on July 1, 2018 to cover the next 12 months.
4. A physical count of office supplies determined that $12,000 of supplies remained on hand.
5. The equipment was purchased three years ago on January 1, 2016. Management determined the equipment had a useful life of 10 years and uses the straight-line method.
6. Weekly payroll is $5,000 and covers a 5 day work week Monday through Friday. The employees were last paid on Friday December 28,2018 for the week of the 17th. On December 31^stthe employees have worked for six days but will not be paid until Friday January 4, 2019.
7. On November 1, 2018 Bean Counters was paid $6,000 in advance of services to be provided evenly over a period of 6 months. As of December 31^stthey have performed the necessary services for November and December.
8. The long-term note was borrowed from Bank of America on July 1^st, 2018 at 3%. The principle and related interest are due in 2 years.