The following trial balance before adjustments is for Snowcrest Ltd. on December 31, 2020:

Data for adjusting entries:

1. As at December 31, 2020, 80% of the wages that had been paid in advance to the salespeople had been earned.

2. A count of the supplies at year end revealed that $600 of supplies were still on hand.

3. Depreciation on the equipment for 2020 was $1,000.

4. The unearned revenue was advance receipts for future deliveries of goods. By December 31, 2020, two-thirds of these deliveries had been made.

5. The bank loan was a six-month loan taken out on October 1, 2020. The interest rate on the loan is 9%, but the interest is not due to be paid until the note is repaid on April 1, 2021.

6. Wages owed at year end and not yet recorded were $500.

7. The rent expense figure includes $600 paid in advance for January 2021.

8. Income tax for the year should be calculated using a tax rate of 25%. After you finish the other adjusting entries, determine the income before income tax and then calculate the tax as 25% of this amount.

Required
Prepare the adjusting entries for the year 2020.

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Debits Credits $ 10,000 Cash Inventory 24,000 Advances to employees 2,000 Supplies 3,000 Equipment 56,000 $ 4,000 Accumulated depreciation, equipment Unearned revenue 6,000 Bank loan payable 20,000 Common shares 40,000 Retained earnings 9,000 Sales revenue 230,000 Cost of goods sold 130,000 Wages expense 34,000 Repairs and maintenance expense 25,000 Rent expense 6,600 Miscellaneous expense 15,000 Dividends declared 3,400 Totals $309,000 $309,000