Reference no: EM132576086

Adjusting entries Data:

1. Record shows that $21000 of cash receipts originally recorded as unearned revenue had been earned as of Dec 31, 2016.

2. On November 01, 2016 the company paid $21900 rent through January 31, 2017.

3. Office supplies on hand at December 31 amount to $440. Office supplies on hand on December 1 was $800.

4. All Computer equipment was purchased when the business first formed on Dec 1 for $36,000. The estimated life of equipment at that time was three years (36 months).

5. On March 01, 2016, the company borrowed $90,000 by signing a 12 months, 10 percent note payable. The entire note plus 12 months accrued interest is due on march 01, 2017.

6. Estimated income tax expense for entire year totals $16000. Taxes are due in the first quarter of 2017.

Question 1. Prepare the adjusting entries.

Question 2. Prepare ledger accounts on December 31.