Inventory 2,000 61,000 21,000 2,400 Salaries payable repaid rent Amidala Accessories sells various types of exotic jewelry and hair ornaments. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Account Title Debits Credits Cash 31,600 Accounts receivable 41,000 Supplies Motor Notes receivable Interest receivable insurance ind 6,500 Office equipment 84,000 Accumulated depreciation 31,500 Accounts payable 32,000 Notes payable 51,000 Interest payable Deferred sales revenue 2,500 Common stock 66,500 31,000 Dividends 5,000 Sales revenue 151,000 Interest revenue 0 Cost of goods sold 75,000 Salaries expense 19,400 Rent expense 11,500 Depreciation expense Interest expense 0 a Supplies expense 1,600 Insurance expense 0 Advertising expense 3,500 Totals 365,500 365,500 Retained earnings Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $10,500. 2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $1,400. 3. On October 1, 2021, Amidala borrowed $51,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years. 4. On March 1, 2021, the company lent a supplier $21,000 and a note was signed requiring principal and interest at 9% to be paid on February 28, 2022. 5. On April 1, 2021, the company paid an insurance company $6,500 for a one-year fire insurance policy. The entire $6,500 was debited to prepaid insurance. 6. $900 of supplies remained on hand at December 31, 2021. 7. A customer paid Amidala $2,500 in December for 1,530 pounds of spaghetti to be delivered in January 2022. Amidala credited deferred sales revenue. 8. On December 1, 2021, $2,400 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022, at $1,200 per month. The entire amount was debited to prepaid rent. Required: Prepare the necessary December 31, 2021, adjusting journal entries. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. View transaction list Journal entry worksheet 2 3 4 5 6 7 00 > Depreciation on the office equipment for the year is $10,500. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 Salaries earned from December 16 through December 31, 2021 were $1,400 and will be paid on January 7, 2022. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal Journal entry worksheet On March 1, 2021, the company lent $21,000. The note required principal and interest at 9% be paid on February 28, 2022. Note: Enter debits before credits. Transaction General Journal Debit Credit 4 Record entry Clear entry View general journal Journal entry worksheet On April 1, 2021, the company paid $6,500 for a one-year fire insurance policy and debited the entire amount to prepaid insurance. Note: Enter debits before credits. Transaction General Journal Debit Credit 5 Record entry Clear entry View general journal Journal entry worksheet Supplies on hand at December 31, 2021 were $900. Note: Enter debits before credits. Transaction General Journal Debit Credit 6 Record entry Clear entry View general journal Journal entry worksheet Amidala credited deferred sales revenue for $2,500 received in December for spaghetti to be delivered in January 2022. Note: Enter debits before credits. Transaction General Journal Debit Credit 7 Record entry Clear entry View general journal Journal entry worksheet
