70.2K

Verified Solution

Link Copied!

Instructions Chart of Accounts General Journal Instructions Your examination of Sullivan Company's records provides the following information for the December 31, year-end adjustments 1. Bad debts are to be recorded at 2% of sales. Sales made on credit totaled $30,000 for the year. 2. Salaries at year-end that have accumulated but have not been paid total $1,400. 3. Annual straight-line depreciation for the company's equipment is based on a cost of $33,000, an estimated life of 8 years, and an estimated residual value of $1,000. 4. Prepaid insurance in the amount of $800 has expired 5. Interest that has been earned but not collected totals $500 6. The company has satisfied performance obligations entitling it to rent in the amount of $1,000 7. Interest on a note payable that has accumulated but has not been paid totals S600. 8. The income tax rate is 30% on current income and is payable in the first quarter of the next year. The pretax income before the preceding adjusting entries is $7,000 Required: Prepare the adjusting entries to record the preceding information Required: Prepare the adjusting entries to record the preceding information. djusting Entries nstructions Chart of Accounts General Journal Instructions General Journal ad Prepare the adjusting entries on December 31. Addtional Intrustion GENERAL JOURNAL ACCOUNT TITLE CREDIT Adjusting Entries 10 12 15 16 17

Answer & Explanation Solved by verified expert

See Answer