You are the accountant for Halkirk Inc.

(Halkirk). For each of the following situations prepare the necessary adjusting entries.

Also show the related transactional entries and the date the entries would be made.

Assume a July 31 year-end. This question can be done using an accounting equation spreadsheet or journal entries.

a. During the year Halkirk’s salespeople earned bonuses of $10,000 for the fiscal year just ended. The bonuses will be paid on September 1.

b. Halkirk rents space in its building to a law firm for $1,000 per month. As of July 31, Halkirk hasn’t received July’s rent. The law firm has indicated that it will pay by the middle of August.

c. Halkirk pays its salaried employees monthly, on the 15th of the month. On July 31 the company owes its employees $7,200.

d. On April 1, Halkirk invested $50,000 in an investment account that pays interest of 4 percent per year, payable on March 31 and September 30.

e. On November 1 Halkirk purchased a two-year computer maintenance service package for $12,000. The package provides same-day, on-site service for the company’s computers.

f. On February 15 Halkirk received $12,000 in advance for goods it will deliver over the next few months. As of July 31, 25 percent of the goods had been delivered.