You are the accountant for Ilderton Ltd.

(Ilderton). For each of the following situations prepare the required adjusting entries.

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

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

a. On September 1 Ilderton purchases a building for $8,000,000 cash. The estimated life of the building is 20 years.

b. As of December 31 Ilderton estimates it owes $1,200 to its electricity supplier for electricity used in December. The company won’t be billed until early March.

c. On July 10 Ilderton receives a $24,000 deposit for services to be provided over the next 18 months, beginning on August 1. The services provided are worth the same amount each month.

d. Ilderton earns $5,000 per month in royalty revenue from another company that has rights to use one of its training programs. The full amount for the year must be paid on June 30 each year.

e. On January 1, the office supplies account had a balance of $5,500. During the year office supplies costing $12,000 were purchased for cash. A count of office supplies on December 31 found supplies worth $2,100 on hand.