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ADJUSTING AND REVERSING ENTRIES
Data for the end-of-year adjustments of Dembrow Company are shown below.
Factory overhead to be applied to work in process
ending inventory
$12,800
Interest receivable
920
Allowance for doubtful accounts
3,920
Office supplies consumed
1,350
Factory supplies consumed
4,250
Insurance expired on factory building and equipment
3,400
Depreciation-factory building
4,600
Depreciation-factory equipment
6,100
Interest payable
8,250
1. Prepare the end-of-year adjusting journal entries, as of December 31, 20-3, for Dembrow Company.
2. Prepare the reversing journal entries for Dembrow Company, as of January 2, 20-4.
Sources of increases to stockholder's equity are
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