Question

I need help recording the following adjusting entries in the General Journal.

Adjusting journal Entries.

Adj-1	Dec. 31	The company has $1,800 of supplies left at month end.
Adj-2	Dec. 31	Record the portion of the Prepaid Insurance used in December.
Adj-3	Dec. 31	Record one month of depreciation for the building purchased on December 1st.
Adj-4	Dec. 31	Employees earned $1,200 in salaries the last week in December that will be paid on January 10th of next year.
Adj-5	Dec. 31	All of the unused gift cards issued in December have expired.
Adj-6	Dec. 31	The company estimates that the one year warranty costs for the products they sold in December to be $450.
Adj-7	Dec. 31	Record the accrued interest for one month on the Note Receivable from December 3rd.
Adj-8	Dec. 31	Using the percentage-of-receivables method, record the adjustment of uncollectible accounts. It is estimated that 3% of ending accounts receivable will be uncollectible.
Adj-9	Dec. 31	Income taxes for the year are $3,700 and will be paid in January.

I do not know if you need the original journal entries to do the adjusted but here's them just in case. (i just need the adjusted)

Trans. Date Dec. 1 Description Borrow $115,000 from the local bank and signed a six-year installment note with payments of $1,905 at the end of each month. The annual interest rate is 6%. Current portion of Note at year end after December payment = 16,500 Purchased a building for $56,000. Paid $2,000 in attorney fees, $4,000 in remodeling costs to get the building ready for use. The building has a 25- year useful life with residual value of $2,000. Sold $4,350 worth of gift cards in opening celebration for services to be provided in December. The gift cards expire at the end of the month. Sell 16,000 shares of no-par value common stock for $6 per share to obtain the funds necessary to start your business. Dec. 1 Dec. 1 Dec. 1 Dec. 1 Purchase $14,400 of inventory on account with terms 3/10 net 30. Dec. 1 Purchase a vehicle necessary for business operations for $21,000 cash. The vehicle has a five year life with a residual value of $3,000. Dec. 1 Dec. 3 Pay $6,000 for one year of insurance in advance. Sell $15,000 of inventory to a customer who signs a 6-month promissory note at 6% with interest and principal due at maturity. perpetual method = 2 entries Purchase Supplies on account, $3,200. Dec. 3 Dec. 6 Dec. 8 Provide $3,480 of services to customers who pay with gift cards (calculate using your hourly service rate) no terms specified. Company pays invoice for inventory purchased on December 1st within discount terms. Purchase an additional $8,640 of inventory for cash. Dec. 10 Dec. 12 Sell $7,500 of inventory to a customer on account with a sales discount of 2/10, n/30. (Perpetual method=2 entries) The customer who purchased product on December 12th pays the amount due (within discount period). Dec. 20 Dec. 23 Sell $13,500 of inventory on account. (Perpetual method = 2 entries) Dec. 31 Record the of $1,905 installment payment on the $115,000 installment note borrowed on December 1st. The annual interest rate is 6%. Dec. 31 Pay employee salaries, $4,000. Dec. 31 Pay cash dividends to shareholders of $0.10 per share. Vehicle did not meet expectations sold to another company for $23,000. (Record depreciation at date of sale and then record sale). 19 Dec. 31

Answer 1

JOURNAL ENTRIES (IN $) 1,400 Adj.1 Dec.31 Supplies expense (3200-1800) Supplies 1,400 Adj.2 Dec.31 500 Insurance expense (6000/12*1) Prepaid insurance 500 Adj.3 Dec.31 200 Depreciation expense [(62000-2000)/25/12] Accumulated depreciation 200 1,200 Adj.4 Dec.31 Salaries expense Accrued salaries 1,200 870 Adj.5 Dec.31 Unearned revenue Service revenue (4350-3480) 870 450 Adj.6 Dec.31 Warranty expense Accrued warranty liability 450 Adj.7 Dec.31 Accrued interest (15000*6%*1/12) Longame

dj s Dec31 405 Bed debts expense (13500*3%) Allowance for doubtful debts 405 Adj9 Dec 3 3,700 Income tax expense Income tax payable 3,700