At year end, the following items have not yet been recorded. a. Interest at 6% is receivable on the note for one full year. b. Rent paid in advance at December 31, $10,800 (originally charged to expense). c. Accrued salaries at December 31, $11,600. d. Insurance expired during the year, $4,000. e. Estimated bad debts, 1% of gross sales. (Hint: ignore existing balance of allowance for doubtful accounts) f. Depreciation on furnittut and equipment, 10% per year.
Instructions (a) Prepare the necessary adjusting entries. (b) Prepare the necessary closing entries.
Attachments:
q1.pdf