Using the following information to fill out the adjusted balance sheet right side

1. 5% of accounts receivable is expected to be uncollectible.

2. The prepaid insurance was purchased on January 1, 2019 in order to cover the next three years.

3. The prepaid rent was paid on June 1, 2018 to cover the next 12 months.

4. A physical count of office supplies determined that $10,000 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 8 years and a salvage value of $80,000. RC uses the straight-line method.

6. Weekly payroll is $10,000 and covers a 5 day work week Monday through Friday. The employees were last paid on Friday December 27, 2018 for the week of the 16th. On December 31st the employees have worked for seven days but will not be paid until Friday January 3, 2019. Seven days of employee wages earned needs to be recorded.

7. On October 1, 2018 Readers Caf was paid $3,000 in advance for cafe sales to be provided evenly over a period of 3 months. As of December 31st they have performed the necessary services for all 3 months.

8. The long-term note was borrowed from Bank of America on July 1st, 2016 at 4%. The principle and related interest are due in 4 years.

Credit Debit Credit Debit 55,000 15,000 $ 2,000 20,000 30,000 36,000 24,000 360,000 E Page 1 70,000 Cash and cash equivalents Accounts receivable Allowance for doubtful accounts Inventory Office supplies Prepaid insurance Prepaid rent Equipment Accumulated depreciation - equipment Salaries payable Interest payable Unearned revenue Income tax payable Notes payable - due in 3 years Common stock 30,000 shares outstanding Additional paid-in capital Retained earnings Dividends Sales revenue, net Sales discount Other revenue Cost of goods sold Salaries expense Advertising expense Rent expense Bad debt expense Depreciation expense Insurance expense Office supplies expense Interest expense Income tax expense 10,000 Page 1 25,000 30,000 20,000 98,000 20,000 484,000 5,000 4,000 125,000 45,000 8,000 $ 743,000 $ 743,000