Year-End Journal Entries

Using the business scenario and the adjustment data given below, complete the end-of-year adjusting and closing entries using the journal entry template. Ensure that you include detailed calculations that helped you to arrive at the solution.

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AC2799: Module 5 Operating Expenses Exercise 5.1 Year-End Journal Entries Using the business scenario and the adjustment data given below, complete the end-of-year adjusting and closing entries using the journal entry template. Ensure that you include detailed calculations that helped you to arrive at the solution. Land: 25 acres valued at $56,000, inherited, currently in Year Two. Warehouse: Built in 2012started to use on 1/6/2012, basis $39,000, residual value $10,000, 30year life uses straight-line depreciationcurrently in year three. Machinery: Straight line cost $22,000, $6,000 residual value, five-year lifepurchased 10/1/2012, currently in year three. 2010 Truck: Cost $20,000, no residual value, four years, purchased and started using on 1/1/2014, currently in year two. Cost of Goods Sold: 1. Blood Pressure Monitors: 2014 Annual sales of 250 units. Ending Inventory is 60 units. Units Unit Cost Total Cost Beginning Inventory 257 350 $89,950 Purchase 1 85 345 $29,325 Purchase 2 300 330 $99,000 2. Ultrasound Scanners: 2014 Annual sales of 1,650 units. Ending Inventory is 1,350. Units Unit Cost Total Cost Beginning Inventory 654 400 $261,600 Purchase 1 250 435 $108,750 Purchase 2 1000 400 $40,000 1 AC2799: Module 5 Operating Expenses Exercise 5.1 Year-End Journal Entries Adjustments needed: Depreciation: Machinery Depreciation: Truck Prepaid Insurance Unearned income 40% completed Wage expense due: $4,500 Cash reserve Office supplies remaining: $245 Calculate sales tax payable: Due 1/28 Interest payable COGSBlood Pressure Monitors COGSUltrasound Scanners Submission Requirements: Submit the completed journal entries template and the detailed calculations to your instructor for evaluation. Evaluation Criteria: The assessment will be evaluated using the following points: Did you correctly record the journal entries for the given transactions in the given template? Did you correctly include the given adjustment data? Did you correctly complete the end-of-year adjusting and closing entries? Did you include detailed steps to support your response? 2