You are the controller at Star Wars, Inc. you must Create Journal Entries for the following transactions

Adjusting Entries

1. The interest revenue accrued to Dec. 31 of this year on notes receivable is composed of the following:

Ben Kenobi, Inc. $3,250

Yoda, Inc. 92

R2D2 Computers 91

2. The insurance premium outstanding at the beginning of the year ($4,940) covers the period of Jan. 1 to August 31 of this year (therefore it is now expired). The insurance premium paid in August of this year (for $10,500) runs from September of this year to August of next year. Record the expired insurance (both the insurance coverage that ended in Aug. of this year and the one that started in Sept. of this year).

3.Interest has accrued at 6.5% on the long-term notes payable since July 1 of this year.

4.Office supplies on hand at the end of the year totaled $577.

5. The six month interest payment on the bonds payable is due Jan. 3 of next year for the six-month period ended on Dec. 31 of this year. The stated (coupon) rate of interest is 10% annually. The market (yield-to-maturity) rate of interest is 12% annually. There were 10 years to maturity at June 30th of this year (the last interest payment date). The bonds are semi-annual. Record interest expense and discount amortization at Dec. 31.

6. Payroll summary for wages earned from Dec. 24 to Dec. 31 is detailed below. These amounts will be paid next year.

Gross Wages $6,300

FICA Taxes Payable 482

Federal Withholding Taxes 1,246

State Withholding Taxes 389

Net Pay 4,183

Employer's share of FICA 482

(No FUTA or SUTA is due)

Instructions Trial Balance at 11 30 2014 General Journal Ger Credit 450 A S Inventory Supplies Star Wars, Inc Trial Balance November 30, 2014 Accounts: Debit Cash 211,524 Petty Cash 300 Accounts Receivable 317,420 Allowance for Doubtful Accounts Notes Receivable (current) 65,000 Interest Receivable 373,700 3.110 S Prepaid Insurance 15,440 E Prepaid Rent 32.150 T Other Assets (current) 165,000 750,000 Buildings 1.100,000 Accumulated Depreciation - Buildings Equipment 891,500 Accumulated Depreciation - Equipment Space Ships 762,865 Accumulated Depreciation - Space Ships Notes Payable (current) L Accounts Payable I Salaries & Wages Payable A FICA Taxes Payable B Income Taxes Payable Land 245.000 377.996 325.450 65,000 321.650 5.200 3,825 36,000 13,521 4,111 650 3.890 1 State Withholding Taxes Payable FUTA Taxes Payable 1 SUTA Taxes Payable T Interest Payable I Dividends Payable E Notes Payable (long-term) S Bands Payable Discount on Bonds Pavable E Common Stock O Additional Paid-in Capital, Common U Retained Earnings 1.200.000 500,000 57.350 504,000 385.000 217,389 T Treasury Stock 56,325 5.079,585 12,567 82,567 3,130,002 25,678 R Sales Revenue E Sales Returns & Allowances Sales Discounts O Cost of Goods Sold P Advertising Expense F Bad Debt Expense R Supplies Expense A Repairs Expense T Miscellaneous Expense | Depreciation Expense Insurance Expense Salaries & Wages Expense Rent Expense Payroll Tax Expense 16,574 28,777 0 C N 953,172 99,657 N Utilities Expense 24,567 3.150 Interest Revenue Gain on Disposal of Fixed Assets Interest Expense 48,752 Loss on Disposal of Fixed Assets Petty Cash Overage/Shortage Income Tax Expense 72,000 Totals 9,295,997 9,295,997