The unadjusted trial balance of Mesa Inc., at the companys year end of December 31, follows:

Mesa Inc.

Trial Balance

December 31, 2021

Debit

Credit

Cash

$17,000

Accounts receivable

31,700

Inventory

28,750

Supplies

2,940

Prepaid insurance

3,000

Land

30,000

Buildings

150,000

Accumulated depreciationbuildings

$24,000

Equipment

45,000

Accumulated depreciationequipment

18,000

Accounts payable

33,735

Deferred revenue

4,000

Bank loan payable

147,100

Common shares

13,000

Retained earnings

$

$31,425

Dividends declared

2,000

Sales

259,995

Cost of goods sold

171,225

Salaries expense

30,950

Utilities expense

5,100

Interest expense

8,090

Income tax expense

5,500

$531,255

$531,255

Additional information and adjustment data:

A 12-month insurance policy was purchased and was effective February 1, 2021.

There was $750 of supplies on hand on December 31.

Depreciation expense for the year is $6,000 for the buildings and $4,500 for the equipment.

Salaries of $750 are accrued and unpaid at December 31.

Accrued interest expense at December 31 is $735.

There was deferred revenue of $975 that still needed to be deferred as at December 31. The balance had been earned. Of the deferred revenue that had been earned, the cost of goods sold was $2,000.

Of the bank loan payable, $9,800 is payable next year.

Income tax of $500 is due and unpaid.

A physical count of inventory indicates $23,800 on hand at December 31.

Common shares of $3,000 were issued during the year.

Instructions

Record the required adjusting entries, assuming the company adjusts its accounts annually.