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1. On the Adj JEs worksheet, prepare the adjusting journal entries in good form for the following items. Identify each entry by letter in Column B. Round all answers to the nearest dollar. You may omit explanations. Leave a blank row between each journal entry. All the accounts you need are given on the worksheet. Use only these accounts. Prepare journal entries and financial statements for the year ended December 31, 2015. No adjusting entries have been made since December 31, 2014. a. Grizzlies, Inc. borrowed money by issuing a nine-month, $20,000, 7.0% note on October 1, 2015 with interest and principal to be paid on maturity. b. On November 1, 2015, Grizzlies, Inc. rented storage space at a cost of $700 per month. On that date Grizzlies, Inc. recorded Prepaid Rent for five months rent paid in advance. c. Grizzlies, Inc. recorded the purchase of $5,500 worth of shop supplies during the year by increasing the Shop Supplies account. A physical count of the shop supplies on hand on December 31, 2015, indicates a balance of $2,800. d. Store supplies totaling $17,500 were purchased during the year and were immediately expensed. A physical count of the store supplies on hand December 31, 2015, indicates a balance of $1,900. e. On April 1, 2015, Grizzlies, Inc. purchased a 24-month insurance policy for $12,000. f. On July 1, 2015, Grizzlies, Inc. collected $26,000 for consulting services to be performed from July 1, 2015 to February 28, 2016. The company credited the Unearned Consulting Revenue account when paid. g. Grizzlies, Inc. rented idle office space to Squirrels, Inc. on February 1, 2015, at a rate of $1,400 per month. On this date Grizzlies, Inc. credited Unearned Rent Revenue for one year of rent received in advance. h. Grizzlies, Inc. is open five days a week and has a daily payroll of $3,200. Employees are paid every Friday. December 31 is a Wednesday. The payroll is allocated as follows: 24% of the payroll relates to office employees, and the balance relates to sales employees. i. Depreciation for store equipment has been calculated to be $2,200 per month. j. Depreciation for office equipment has been calculated to be $600 per month. k. Utilities expenses of $1,500 were incurred, but not yet recorded. Utilities expense is allocated as follows: 14% relates to the office and the balance relates to the store.

Grizzlies, Inc.
Worksheet
For the Year Ended December 31, 2015
	Unadjusted				Adjusted
Account Title	Trial Balance		Adjustments		Trial Balance		Income Stmt		Balance Sheet
	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	36,000
Accounts Receivable	277,000
Inventory	242,500
Prepaid Insurance	12,000
Prepaid Rent	3,500
Store Supplies	-
Shop Supplies	5,500
Store Equipment	120,000
Accumulated Depreciation - Store Equipment		22,000
Office Equipment	32,000
Accumulated Depreciation - Office Equipment		1,800
Accounts Payable		49,000
Salaries Payable
Interest Payable
Utilities Payable
Unearned Consulting Revenue		26,000
Unearned Rent Revenue		16,800
Note Payable		20,000
Common Stock		300,000
Retained Earnings		189,350
Dividends	11,000
Sales Revenue		1,551,600
Consulting Revenue
Rent Revenue
Interest Revenue
Cost of Goods Sold	975,000
Sales Salaries Expense	275,000
Office Salaries Expense	150,000
Miscellaneous Administrative Expense	5,650
Miscellaneous Selling Expense	13,900
Depreciation Expense - Store Equipment
Depreciation Expense - Office Equipment
Store Supplies Expense	17,500
Shop Supplies Expense
Rent Expense
Insurance Expense
Interest Expense
Utilities Expense-Store
Utilities Expense-Office
	2,176,550	2,176,550

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