Question

Journalize the adjusting entries

Thank you!

Instructions (a) Prepare the adjusting entries at December 31. (Show all calculations.) NG R(b) Rolling Resort is preparing for a meeting with potential investors. What is the net effect of the adjusting entries on net income? Explain why Rolling Resort's potential investors should be willing to wait for Rolling Resort to complete its year-end adjustment process before deciding whether or not to invest in the company P3-4 Second-Hand Almost New Department Store Ine. is located near a shopping mall. At the end of the company's fiscal year on December 31, 2017, the following accounts appeared in two of its trial balances: Unadjusted $ 79,300 95,300 42,100 29,600 190,000 68,000 160,000 Accounts payable Accounts receivable Accumulated depreciation-building Accumulated depreciation-equipment Buildings Cash Common shares Cost of goods sold Depreciation expense Dividends Equipment Insurance expense Interest expense Interest income Interest payable Inventory Mortgage payable Prepaid insurance Property tax expense Property tax payable Retained earnings Salaries and wages expense Sales commission expense Sales commission payable Sales returns and allowances Sales revenue Utilities expense Adjusted $ 79,300 95,300 52,500 42,900 190,000 68,000 160,000 412,700 23,700 28,000 110,000 7,200 11,000 4,000 8,000 75,000 80,000 2,400 4,800 4,800 16,600 108,000 14,500 3,500 8,000 718,000 11,000 28,000 110,000 3,000 4,000 75,000 80,000 9,600 16,600 108,000 11,000 8,000 718,000 Analysis reveals the following additional information: 1. Insurance expense and utilities expense are 60% selling and 40% administrative. 2. In the next year, $20,000 of the mortgage payable will be due for payment. 3. Property tax expense and depreciation on the building are administrative expenses; depreciation on the equipment is a selling expense; and $32,000 of the salaries and wages expense related to office salaries and the remainder related to sales salaries Depreciation expense includes SO 400 relating to the building and S13,300 relating to equipment. sheet. (Hint: Use

Answer 1