Question

ADJUSTING ENTRIES: I dont know how to interpret adjusting entry questions. If anyone could just guide me in what i should do for each question and if it goes in debits or credit, I know you need all the info but just use hypothetical questions as examples to help me. This is for a project due in 2 days. Thanks! DR CR Cash 67,188 Accounts Receivable 88,704 Allowance for Doubtful Accounts 792 Interest Receivable Merchandise Inventory 168,300 Prepaid Insurance 7,128 Prepaid Rent 22,176 Supplies 30,096 Note Receivable 15,180 Store Equipment 270,864 Accumulated Depreciation - Store Equipment 29,304 Accounts Payable 126,720 Salaries & Wages Payable Interest Payable Utilities Payable Note Payable (final payment due 2018) 24,420 Common Stock 79,200 Retained Earnings 257,400 Dividends 31,680 Sales 2,557,500 Sales Returns and Allowances 15,840 Sales Discounts 34,056 Cost of Goods Sold 1,888,788 Salaries & Wages Expense 430,056 Depreciation Expense - Store Equipment Bad Debt Expense Insurance Expense Rent Expense Supplies Expense Utilities Expense 5,280 Interest Revenue Interest Expense 3,075,336 3,075,336 Net Income The following items should be considered in adjusting the accounts for financial statement preparation: 1. On February 1, 2017 a 12-month insurance policy was purchased. No expense has been recoginized for 2017. 2. Signed a one year lease for rental space on March 1, 2017. By paying for the entire year, the landlord offered a reduced rate. 3. The physical inventory count of Merchandise Inventory indicated an amount of $163,944. 4. Supplies on hand at December 31, 2017 total $1,934. 5. Store Equipment is depreciated on a straight-line basis; residual value is $10,000 with service life of 10 years. The assets were held the entire year. 6. On August 1, issued Carter Supplies a six-month note receivable at a 8.4% annual interest rate. 7. Management estimates 2.7% of its gross accounts receivable to be uncollectible. 8. On September 1, 2017 borrowed funds. The note bears 6.8 % annual interest. 9. Salaries & Wages of $6,470 are accrued and unpaid at December 31, 2017. 10. Accrued utilities totaled $752.