You recently started to work for an accourting firm in town as a bockleeper and one of your clierts,

ally Bcb Mechanica, has come in to discuss the corrarv$/$s vear end ransactors. The corrcany

Instructions: Please prepare all the required aqusting joumal entries using the exising accourts

Trangaction Notes

Billy Bcb estimated Tat Suppies were worth around $$2,500$ at the end of the period

Billy Bcb confrmed thar insurance was purchased in Octoter for the $$12\mathrm{.}000$ and is recorded

in the TR$.$ The insurance policy coverage started on the first of Oatcober and covers a $12-$month

period.

Billy Bcb stade that new equiprent was purchased on Jaruay $1,2000$ and has not been

decreciated before R was purchased for $$15,000$ and is expected of last $5$ vears. The equipreri

The company iruck also needs to te amortized, iz was crignally purchased for $$25,000$ and

had a usefu life of $10$ vears, and a residual value expected io be $$5,000.$ It was purchased $3$

years, ago please tecond this years ancriaation expense.

Billy Bcb had cash in his walet at he time of the meeting for an urrecorded payment that has

not been refected in the TB$.$ Bily Bcb said he would deposit the cash that dry and that it shouid

Bob contrmed the payment was for services to be provided in $2021$ to a custoree

A separate arsorrer prepaid $$4,000$ for sendices in the previcus year, based on internal

analysis Bily Bob conffrred thas approximately $$1,300$ remrains oustanding to be complefed.

There is $$200$ in irterest charges that have not been charged to arstorers with outstanding

accourt balance

The company is in the midfle of a kecchen repair due to a leak thax is sponning year end, the

heeded to be completed.

The company had to bomow from ther line of credt to help concary cashfow in the las:

quarter, they bocrowed $$6,750($see loan balance$)$ on June $30.$ Theit lire of credic carries an

quarter, they bortowed $$6,75,$ see cal balarcel on $3\%$ per year, please calcuate and record foe interest coperse.

The final pay period al year end did not fal on Decerter $31,k$ was January $5(5$ drys$)$ later.

assuring al emplovees eam salary totaling $$1,235$ per week, and that the previous pay period

was $1$ week pricr, please record the salary acorual

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