The following adjustments need to be made before the financialstatements can be prepared at the end of the year.
Task 1: Enter the necessary journal entries into the templateprovided and provide the journal entry for each.

December Interest on a bank loan is due on January 2nd of thefollowing year: accrue $1,000.
A contractor (outside services) has finished work on December 31st,but the invoice will not be received until January 7th of thefollowing year: accrue $750. A rent payment was made on December1st for three months from December 1st to February 28th of thefollowing year (6,000 in total). Record the transactionproperly.

The companyâs part-time employees worked a total of 50 hours inDecember, but will get paid only by January 5th. The hourly rate is$15.
The company must record the payment of its annual insurance premiumfor next year. The annual premium is $1,200, an adjustment isnecessary to prepaid insurance.

Task 2: Provide the adjusted trial balance (combine exercises2.1 and 2.2 to show the adjusted trial balance).

1 Interest Expense

Interest Payable

To record December interest expense to bepaid in January

2 Expense for Outside Services

Accounts Payable

To record liability towardscontractor

3 Rental Expenses

Prepaid Rent

Cash

To record the appropiate rental expensefor the month

4 Wage Expense

Wages Payable

To record liability towards employees

5 Prepaid Insurance

Cash

To record insurance payment for thefollowing year

Total $0 $0

TRIAL BALANCE Starting Balance Adjusting Entry 1 Adjusting Entry 2 Adjusting Entry 3 Adjusting Entry 4 Adjusting Entry 5 Adjusted Trial Balance

Debit (+) Credit (-) Debit (+) Credit (-) Debit (+) Credit (-) Debit (+) Credit (-) Debit (+) Credit (-) Debit (+) Credit (-) Debit (+) Credit (-)

Cash - -

Prepaid Rent - -

Prepaid Insurance - -

Finished Goods - -

Receivables - -

Machinery and Equipment - -

Building - -

Common Stock - -

Bank Loans - -

Accounts Payable - -

Interest Payable - -

Wages Payable - -

Sale of Goods Produced - -

Cost of Goods Sold - -

Expense for Outside Services - -

Wage Expenses - -

Rent Expense - -

Depreciation - -

Insurance Expense - -

Interest Expense - -

- - - - - - - - - - - - - -

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Adjustment	Account and details	REF	Debit	Credit
1	Interest Expense
	Interest Payable
	To record December interest expense to bepaid in January
2	Expense for Outside Services
	Accounts Payable
	To record liability towardscontractor
3	Rental Expenses
	Prepaid Rent
	Cash
	To record the appropiate rental expensefor the month
4	Wage Expense
	Wages Payable
	To record liability towards employees
5	Prepaid Insurance
	Cash
	To record insurance payment for thefollowing year

	Total		$0	$0

The following adjustments need to be made before the financialstatements can be prepared at the end of the year.
Task 1: Enter the necessary journal entries into the templateprovided and provide the journal entry for each.

December Interest on a bank loan is due on January 2nd of thefollowing year: accrue $1,000.
A contractor (outside services) has finished work on December 31st,but the invoice will not be received until January 7th of thefollowing year: accrue $750. A rent payment was made on December1st for three months from December 1st to February 28th of thefollowing year (6,000 in total). Record the transactionproperly.

The companyâs part-time employees worked a total of 50 hours inDecember, but will get paid only by January 5th. The hourly rate is$15.
The company must record the payment of its annual insurance premiumfor next year. The annual premium is $1,200, an adjustment isnecessary to prepaid insurance.

Task 2: Provide the adjusted trial balance (combine exercises2.1 and 2.2 to show the adjusted trial balance).
Submission Requirements:
Click here to download the template for calculation.

redraccoon69

. Make all 16 adjustments to journal entries. Remember to include a description under each journal entry.

1	On March 1, ABC purchased a one-year liability insurance policy for $98,400.
	Upon purchase, the following journal entry was made:
		Dr Prepaid insurance			98,400
			Cr Cash			98,400
	The expired portion of insurance must be recorded as of 12/31/14.
	Notice that the expired portion from March through November has been recorded already.
	Make sure that the Prepaid Insurance balance after the adjusting entry is correct.


2	Depreciation expense must be recorded for the month of December.
	The building was purchased with cash on February 1, 2014, for $150,000 with a remaining useful life of 30 years and a salvage value of $6,000.
		The method of depreciation for the building is straight-line.
	The equipment was purchased with cash on February 1, 2014, for $60,000 with a remaining useful life of 5 years and a salvage value of $3,000.
		The method of depreciation for the equipment is double-declining balance.
	Depreciation has been recorded for the building and equipment for months February through November.


3	On December 1, XYZ Co. agreed to rent space in ABC's building for $12,000 per month,
	and XYZ paid ABC on December 1 in advance for the first three months' rent.
	The entry made on December 1 was as follows:
		Dr Cash			36,000
			Cr Unearned rent revenue			36,000
	The unearned revenue account must be adjusted to reflect the amount earned as of 12/31/14.


4	Per timecards, from the last payroll date through December 31, 2014, ABC's employees have worked a total of 250 hours.
	Including payroll taxes, ABC's wage expense averages about $51 per hour. The next payroll date is January 5, 2015.
	The liability for wages payable must be recorded as of 12/31/14.


5	On November 30, 2014, ABC borrowed $235,000 from American National Bank by issuing an interest-bearing note payable.
	This loan is to be repaid in three months (on February 28, 2015), along with interest computed at an annual rate of 6%.
	The entry made on November 30 to record the borrowing was: (for Statement of Cash Flow purposes, consider a financing item)
		Dr Cash			235,000
			Cr Notes payable			235,000
	On February 28, 2015 ABC must pay the bank the amount borrowed plus interest.
	Assume the beginning balance for Notes Payable is correct.
	Interest through 12/31/14 must be accrued on the $235,000 note.


6	ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking a complete
	physical inventory at year-end. A physical count was taken on December 31, 2014, and the inventory on-hand at
	that time totaled $75,000, which reflects historical cost.
	Record the 2014 Cost of Goods Sold and the 12/31/14 Inventory adjustment.


	Additionally, ABC adheres to GAAP by recording ending inventory at the lower of cost and net realizable value at a total inventory level.
	A review of inventory data further indicated that the current retail sales value of the ending inventory is $110,000 and estimated costs of
	completion and shipping is 15% of retail. Be sure to make an additional adjustment, if necessary, to properly value ending inventory
	using the Loss and Allowance methodology. For Income Statement presentation purposes, be sure to use the Loss Method for accounting
	for adjustments of inventory to market value.


7	It would be unusual for a company to have an asset impairment in Year 1, but for the sake of this example, ABC realized
	that their intangible asset might be impaired on December 31, 2014. Record the impairment if any.
	The expected future net cash flows for this intangible asset totals $30,000, and the fair value of the asset is $27,500.


8	On 7/1/14, ABC purchased 7,000 shares of its own stock from existing stockholders as treasury stock. The cost of the treasury
	stock was $7 per share, or $49,000 in total. The effects of this transaction are already shown in the unadjusted trial balance. On 12/31/14,
	ABC reissued these 7,000 shares of treasury stock at $10 per share. Record the journal entry required for the reissuance of the treasury stock.


9	On 12/31/14, ABC issued 5,000 shares of $3 par value common stock at the closing market price of $7 per share. Prepare ABC's journal entry
	to reflect the issuance of the stock on 12/31/14.


10	On 7/1/14, ABC sold 12% bonds having a maturity value of $800,000 for $861,771, resulting in an effective yield of 10%. The bonds are
	dated 7/1/14, and mature 7/1/19. Interest is payable semiannually on July 1 and January 1. ABC uses the effective interest method of
	amortization for bond premium or discount. Record the adjusting entry for the accrual of interest and the related amortization on 12/31/14.
	Hint: Develop an abbreviated amortization schedule to accurately determine the interest expense.


11	The following information is available for ABC Corporation at 12/31/14 regarding its investments in stocks of other companies.

		Securities					Cost	Fair Value
		2,200 shares of Toyota Corporation Common Stock					$ 100,000	$ 125,000
		1,100 shares of G.M. Corporation Common Stock					$ 67,000	$ 34,000
							$ 167,000	$ 159,000
	Prepare the adjusting entry (if any) for 2014, assuming the securities are classified as trading.


12	On 1/1/14, ABC Corporation purchased, as a held-to-maturity investment, $200,000 of the 8%, 5-year bonds of Intuit Corporation for $177,824,
	which provides an 11% return. Prepare ABC's 12/31/14 journal entry to reflect the receipt of annual interest and discount amortization.
	Assume the bond investment pays interest annually on 12/31 each year and that effective interest amortization is used.
	Note: Notice that a discount account is not used for this investment. Therefore, for purposes of this adjusting entry, amortize the discount directly to the
	investment account.


13	ABC Corporation prepares an aging schedule on 12/31/14 that estimates total uncollectible accounts at $25,000. Assuming that the allowance method is used,
	prepare the entry to record bad debt expense.


14	On 1/1/14, ABC Corporation signed a 5-year noncancelable lease for a delivery vehicle. The terms of the lease called for ABC to Corporation to make
	annual payments of $10,503 at the beginning of each year, starting January 1, 2014. The delivery vehicle has an estimated useful life of 6 years and a $7,000
	unguaranteed residual value. The delivery vehicle reverts back to the lessor at the end of the lease term. ABC Corporation uses the straight-line method
	of depreciation for the delivery vehicle. ABC Corporation's incremental borrowing rate is 10%, and the Lessor's implicit rate is unknown. No entries have yet
	been made concerning this lease arrangement. After determining the type of lease arrangement (capital or operating), prepare the necessary multiple-part journal
	entry for 2014 for ABC Corporation. (Hints: You will need to compute the present value of the minimum lease payments and 4 separate sub-entries for
	this lease transaction. Also, for Statement of Cash Flow purposes, the principal portion of lease payments are correctly categorized as a financing activity.)


15	ABC Corporation provides a defined benefit pension plan for its employees. A combination adjusting entry should be made to correctly account for this type of pension
	plan given the following items of information for the 2014 plan year, including the recording of pension expense and the employer's contribution to the pension plan in 2014.
	Note: Use the summary entry method as demonstrated and discussed in the chapter lectures on pension accounting to prepare the adjusting entry.

	Pension asset/liability (January 1)			$0
	Actual return on plan assets			$40,000
	Expected return on plan assets			$20,000
	Contributions (funding) in 2014			$37,000
	Fair value of plan assets (December 31)			$75,000
	Settlement rate			10%
	Projected benefit obligation (January 1)			$0
	Service cost			$60,000
	Benefits paid in 2014			$0
	*For purposes of financial statement presentation, consider Pension Expense as an operating item and any resulting Pension Asset/Liability as long-term in nature.

16	On December 31, 2014, ABC Corporation issued 1,000 shares of restricted stock to its Chief Financial Officer. ABC stock had a fair value (closing market price) of
	$10 per share on December 31, 2014. Additional information is as follows:
		a. The service period related to the restricted stock is 2 years.
		b. Vesting occurs if the CFO stays with the company for a two-year period.
		c. The par value of the common stock is $3 per share.
	Make the appropriate accounting entry as of the grant date, 12/31/14. Note: use the alternative method as described in your textbook for deferred compensation.

	Do this step after preparing the Income Statement except for the Income taxes line: (You need to calculate Income Before Income Taxes in order to calcualte total Income Tax Expense)
17	Corporate taxes are due in four estimated quarterly payments on April 15, June 15, September 15, and December 15.
	However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full
	on the return's March 15, 2015 due date.
	ABC's income tax rate is 40%. The entire year's income tax expense was estimated at the beginning of 2014 to be $69,600,
	so January through November income tax expense recognized amounts to $63,800 (11/12 months).
	Since we are assuming estimates are not made during the year, the balance in Income taxes payable represents
	tax accrued for January through November. Assume no deferred tax assets or deferred tax liabilities.
	Based on the income before income taxes figure from the income statement, record December's income tax expense
	so that the entire year's total tax expense is correct.

Narrative andInstructions

Rockford Corporation is awholesale plumbing supply distributor. The corporation wasorganized
in 1981, under the laws of theState of Illinois, with an authorized capitalization of 10,000shares
of no-par common stock with astated value of $18 per share. The common stock is sold overthe
the counter in the local area.You have been hired as of Thursday, December 25, 2014, to replacethe
controller, who has resigned.As controller, you are responsible for the corporation'saccounting
recrods, preparation of thefinancial statements, safeguarding the corporate assets, andproviding
management with financialinformation to set prices and to monitor and controloperations.

Rockford Corporation closesits books annually on December 31 but prepares financialstatements
quarterly. Adjusting entriesare posted to the general ledger only at year-end; at the end ofthe
first, second, and thirdquarter the adjustments are entered only on a work sheet, not inthe general
ledger. Therefore, theadjusting entries to be recorded on December 31 are annualadjustments that
you must journalize and thepost to the general ledger accounts before preparing thefinancial
statements.

Rockford Corporation maintainsa perpetual inventory system and takes a physical count eachyear
to adjust the inventorycarrying amount. Purchases are recorded at the gross amount(discounts
taken are recognized at thedate of payment) of the supplier's invoice, and the terms varywith
each supplier. Sales onaccount are subject to terms of 1/10, n/30. Discounts are taken andgranted
only when the terms are met.The cost of all inventory sold in December was 65% of the salesprice.
The corporation uses thefollowing journals and ledgers:

Journals
1. A sales journal (S) - torecord sales of merchandise on account.
2. A purchase journal (P)- torecord purchases of merchandise on account.
3. A cash receipts journal(CR) - to record all cash receipts.
4. A cash disbursementsjournal (CD) - to record all cash payments.
5. A general journal (J) - torecord all transacitons that cannot be recorded in the otherjournals.

Ledgers
1. A general ledger
2. An accounts receivablesubsidiary ledger.
3. An accounts payablesubsidiary ledger.

In recording salestransactions, each sale should be posted on the day of the saledirectly to the
customer's account in thesubsidiary ledger, using the invoice number as the postingreference
number in the subsidiaryaccount. Also, cash receipts from customers should be posted tothe
subsidiary ledger on the daythey are received. The purchase order number should be used as
the posting reference numberin the subsidiary ledger for purchases on account fromsuppliers.
Purchases from suppliers andpayments to them should be posted daily. All other individualposting
may be made weekly or at themonth-end. Account numbers should be used as posting reference
numbers in the journals.Officers and office personnel are salaried employees and are paidmonthly
on the last day of each month.The delivery truck drivers and warehouse employees are hourlywage
employees and are paidbiweekly. Each biweekly pay period ends Friday. On the followingMonday
you assistants provide youwith a payroll summary from which you prepare general journalentries
to record the biweekly payrolland the employer's taxes on the payroll. The biweeklyemployees'
paychecks are distributed onthe following day (Tuesday).

The January 1, 2014, balancesappear in the general ledger accounts as well as the Noverber 30,2014,
balances, for those accountswhose balances have changed. All transacitons affecting thenon-
current accounts from January1, 2014, through Noverber 30, 2014, with explanations, appearin
these accounts to facilitatethe preparation of the statement of cash flows.

Subsidiary ledger accountbalances as of Noverber 30, 2014, are as follows:

Accounts Receivable			Acct No	Amount
Boecker Builders			117	62,920
The Potts Company			122	46,300
Swanson BrothersContruction			133	22,590
A & B Hardware			143	-
Trudy's Plumbing			155	15,500
Coconino Contractors Inc			160	28,700
Rankin Plumbing Corp			166	74,350
Beverly's BuildingProducts			175	13,600
Bilder Construction Co			180	48,900
Iwanaga Plumbing andHeating			190	5,800
Total				318,660

Accounts Payable			Acct No	Amount
Phoenix Plastics			14	19,280
Business Basics Inc			16	-
Edward's PlumbingSuppliers			18	20,050
DeKalb Transport			20	-
Oxenford Copperworks			35	28,700
Smith Pipe Co			39	37,700
Ron & Rod's PlumbingProducts			44	14,850
Khatan Steel Corp			57	12,000
Total				132,580

The transactions throughDecember 23 have already been recorded by the former controller.You
are to begin your work byentering the transaction of December 25 for the payment of cashto
repurchase stock.

			Dec-14
S	M	T	W	T	F	S
	1	2	3	4	5	6
7	8	9	10	11	12	13
14	15	16	17	18	19	20
21	22	23	24	25	26	27
28	29	30	31


December Transactions
December
1	Received a check in the amount of $22,364 fromSwanson Brothers Contruction in full
	payment of invoice No. 1120 dated Novermber 26 inthe amount of $22,590.
1	Sold sewer and drainage pipe to Beverly's BuildingProducts on account, invoice No. 1201
	for $28850.
2	Purchased copper tubing and fittings from Edward'sPlumbing Supplies Inc. on account,
	purchase order No. 315 for $32660, terms n/60.
2	Issued check No. 1580 for $28,700 to OxenfordCopperworks in settlement of the
	balance owned on purchase order No. 280.
3	A court notice indicates that Iwanaga Plumbing andHeating is bankrupt and payment
	of its account improbable; the president orders theaccount to be written off as a
	bad debt (invoice No. 780).
3	Sold bathroom fixtures to Bilder Construction Co onaccount, invoice No. 1202 for
	$47,700.00
4	Received a check in the amount of $45,374 from thePotts Co in full payment of invoice
	No. 1128 dated November 27 for $46,300.
4	Sold plumbing supplies and plastic pipe to CoconinoContractors Inc. on account, invoice
	No. 1203 for $12,300.
4	Issued check No. 1581 for $720 to Standard Oil Co,in payment of gas, oil, and truck repair
	from Tierney's Standard Service.
5	Issued check No. 1582 for $11,880 to Khatan SteelCorp. in full settlement of purchase order
	No. 312 for $12,000.
5	Issued check No. 1583 for $12,054 to PhoenixPlastics in full payment of Phoenix's invoice
	dated November 28 in the amount of $12,300, forpurchase order No. 313, terms 2/10, n/30.
5	Received a check in the amount of $72,863 fromRankin Plumbing Corp. in full payment
	of invoice No. 1129 dated November 28 for$74,350.
8	Sold cast pipe to Trudy's Plumbing on account,invoice No. 1204 for $26,300.
8	Received a check in the amount of $28,700 fromCoconion Contractors, Inc. in full payment
	of invoice No. 1091 dated October 20.
8	Purchased bathroom fixtures from Phoenix Plastics,on account, purchcase order No. 316
	for $56,800 terms 1/10, n/30.
8	Received a check in the amount of $29,600 fromBoecker Builders in partial payment of
	balance outstanding covering invoice Nos. 1050 and1071.
9	The payroll summary for the biweekly pay periodended Friday, December 5 contained the
	follwing information:
	Delivery and warehouse wages				4,860
	FICA taxes withheld				410
	Federal income taxes withheld				900
	State income taxes withheld				190
		Net pay			3,360
	Employer's payroll taxes:
	FICA tax				410
	Federal unemployment tax				-
	State unemployment tax				-
	Issued check No. 1584 for the amount of the net payand deposited it in the payroll bank
	account. Individual payroll checks were thenpreppared for distributions to the biweekly
	emplyees on Tuesday, December 9, 2014.
9	Issued check No. 1585 for $650 to Scooter Gordonfor lettering and sign painting on some
	delivery trucks.
9	Issued check No. 1586 for $6,980 to PhoenixPlastics, in payment of Phoenix's invoice dated
	November 12 in the amount of $6,980, our purchaseorder No. 299.
10	Issued check No. 1587 for $37,323 to Smith Pipe Coin full payment of their invoice dated
	November 28, terms 1/15, n/30, our purchase orderNo. 314.
10	Received a check in the amount of $15,500 fromTrudy's Plumbing in full settlement of
	invoice No. 1106 dated November 7.
10	Sold pipe, fixtures, and accessories to Trudy'sPlumbing on account, invoice No. 1205 for
	$26,850.00
11	Sold pumbing supplies and copper tubing to ThePotts Company on account, invoice No.
	1206 for $31,450.
11	Received a check in the amount of $33,320 fromBoecker Builders in full payment of invoice
	No. 1071.
11	Cash sales to date totaled $10,232.
12	Received a check in the amount of $25,774 fromTrudy's Plumbing in payment of inoivce
	No. 1204.
12	Sold plumbing fixtures and supplies to BoeckerBuilders, on account, invoice No. 1207
	for $24,730.
15	The Potts Co returned defective copper tubing thatis purchased on December 11. A credit
	memo in the amount of $5680 is issued relative toinvoice No. 1206. The copper tubing
	had a cost of $3692.
15	The defective copper tubing is returned to Edward'sPlumbing supplies, Inc. along with
	a debit memo in the amount of $3692 in reduction ofpurchase order No. 315.
15	Issud check No. 1588 for $599 in payment ofNovember telephone bill to Northern
	Illinois Communications.
16	Issued check No. 1589 in the amount of $12,360 inpayment of federal withholding taxes,
	$10,573, and FICA taxes, $1787, payable on Novembersalaries and wages; The check is
	remitted to the Winnebago County Bank as thedepository.
16	Issued check No. 1590 for $56,232 to PhoenixPlastics, Inc, in payment of purchase order
	No. 316.
17	The president informs you that Bilder ConstructionCo agrees to convert the $48900
	overdue account receivable (invoice No. 1120) to a8% note due six months from today.
17	Purchased plumbing materials from Smith PipeCompany on account, purcase order No.
	317 for $,51,120 terms 1/15, n/60.
17	Sold drain tile, plastic pipe, and copper tubing toA & B Hardware on account, invoice No.
	1208 for $7,340.
18	Sold fixtures and materials to CoconinoContractors, Inc. on account, invoice No. 1209 for
	$44,530.
18	An invoice in the amount of $1,021 was receivedfrom S. White Trucking Company for
	freight on purchase order No. 317 and paid byissuing check No. 1591.
18	Received a check in the amount of $26,582 fromTrudy's Plumbing in payment of invoice
	No. 1205.
19	Purchased office supplies from the Pen & Pad,issuing check No. 1592 in the amount of
	$1,460. (Note: Debit asset account).
19	Purchased a new Faith computer for $5600 fromBusiness Basics, Inc, purchase order
	No, 318, paying $600 down through check No. 1593with the balance due in thirty days
	(n/30). The computer has an estmated life of 4years with a salvage value of $2200.
22	Purchased bathroom and kitchen fixtures fromPhoenix Plastics, on account, purchase
	order No. 319 for $48,330, terms 1/10, n/30.
22	Received a bill from DeKalb Transport for $2580 forfreight costs incurred during the last 30
	days, terms n/30.
23	The payroll summary for the biweekly pay periodended Friday, December 19 contained the
	follwing information:
	Delivery and warehouse wages				5,770
	FICA taxes withheld				415
	Federal income taxes withheld				1,067
	State income taxes withheld				225
		Net pay			4,063
	Employer's payroll taxes:
	FICA tax				415
	Federal unemployment tax				-
	State unemployment tax				-
	Issued check No. 1594 for the amount of the net payand deposited it in the payroll bank
	account. Individual payroll checks were thenprepared for distributions to the biweekly
	emplyees on Tuesday, December 23.

	NOTE: Transactions up to this point have beenrecorded. At this point you became
	controller and are responsible for recordign allfurther transactions.

25	The board of directors voted to purchase 2,500shares of its own stock from stockholder
	Dionne Schivone at $76 per share and issued checkNo. 1595 in payment. Stock repurchases
	are recorded at cost. Rockford is purchasing theseshares because Ms. Schivone had been
	a valuable employee.
26	The baord of directors declared a $1.25 per sharecash dividend payable on January 14 to
	shareholders of record by the end of the day ofDecember 26.
26	The president informs you that Beverly's BuildingProducts agrees to convert the $13,600
	overdue accounts receivable (invoice No. 1119)balance to a 10% note due six months from
	today.
29	A half-acre parcel of land adjacent to the buildingis acquired in exchange for 750 shares
	of unissued common stock. The land has a fair valueof $58,400 and will be used
	immediately as an outside storage lot and parkinglot.
29	An invoice in the amount of $1,860 is received fromWayne McManus, lawyer, for legal
	services involved in the acquisition of theadjacent parcel of land; check No. 1596 is issued.
29	Sold pipe and plumbing materials to BoeckerBuilders on account, invoice No. 1210 for
	$44,280
30	Issued check No. 1597 in the amount of $3,500 tothe Northern Star for adverstisement run in
	the home building supplement of December 13.
30	Issued check No. 1598 in the amount of $830 toStandard Oil Co. in payment of gas, oil,
	and truck repairs from Standard Oil Co. (useFreight-out).
30	Purchased copper and cast iron pipe from OxenfordCopperworks on account, purchase
	order No. 320 for $55,240, terms 1/10, n/30.
30	Check No. 1599 for $9,400 is issued to the bondsinking fund trustee, Chicago Trust Co.,
	for deposit in the sinking fund. (Use OtherAssets).
30	Sold plumbing supplies to Swanson BrothersConstruction on account, invoice No. 1211
	for $24,150.
31	Received a check for $24,730 from Boecker Buildersin payment of invoice No. 1207.
31	Issued check No. 1600 for $50,609 to Smith PipeCompany in payment of purchase order
	No. 317.
31	The custodian of the petty cash fund submits thefollowing receipts for reimbursement
	and reports a cash-on-hand count of $8.
	Postage stampls used (supplies)			$38
	United Parcel (freight-out)			23
	C.O.D postage (freight costs)			51
	Christmas office decorations (Misc exp)			30
	Check No. 1601 is issued and cashed to reimbursethe fund.
31	Sold an electric truck-lift to Leila Stierman Co.for $2600 cash. The original cost was
	$7900 with salvage value of $900, a life of 10years, and accumulated depreciation
	recorded through 12/31/13 is $4,550. Thestraight-line method is used. (Note: the
	company follows the practice of recording a halfyear's depreciation in the year of
	acquisition and a half year in the year ofdisposal.) First, bring the depreciation expense
	up to date in the general journal. Then journalizethe entire entry for the sale in the cash
	receipts journal.
31	Sold bathroom fixtures and plumbing supplies toTrudy's Plumbing on account, invoice
	No. 1212 for $56370.
31	Because for some time the petty cash fund has beensmaller than required for monthly
	expenditures, the fund is increased by $95 bycashing check No. 1602 and placing the
	money in the petty cash fund.
31	The payroll summary for the monthly paid employeesin submitted so that December
	checks can be distributed before the year-end; thedetails are as follows:
	Office and administrative salaries				$43,900
	Federal income taxes withheld				7,696
	State income taxes withheld				1,517
	FICA taxes withheld				3,120
		Net pay			$31,567
	Issued check No, 1603 for the amount of the net payand deposited it in the payroll bank
	account. Individual payroll checks were preparedfor distribution to all monthly employees
	by the end of the day.
	Employer's payroll taxes:
	FICA tax (all office and administrative)				$3,120
	Federal unemployment tax				0
	State unemployment tax				0
31	Cash sale since December 12 total $42150.




Instructions
1	Make the entries in the appropriate journal forDecember 25 through December 31.
	(adjusting entries are recorded in generaljournal)
2	Post any amounts to be posted as individual amountsfrom journals to the general ledger
	and update the receivable and payable subsidiaryledger accounts.
	(only a few entries are posted for Dec, e.g.,account receivable. Please post all other entries)
3	Foot and cross-foot the columnar journals andcomplete the month-end postings of all
	books of orginal entry.

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