Reference no: EM132476375

The unadjusted trial balance of Shamrock, Inc. at December 31, 2017, is as follows:

                                                                  Debit                                   Credit

Cash                                                                                               $17,100

Accounts Receivable                                     108,500

Allowance for Doubtful Accounts                                                            $3,400

Inventory                                                                                           60,700

Prepaid Insurance                                           4,622

Bond Investment at Amortized Cost                     57,120

Land                                                                                                   30,400

Buildings                                                                                             150,800

Accumulated Depreciation-Buildings                          12,080

Equipment                                                          32,760

Accumulated Depreciation-Equipment                          5,460

Goodwill                                                                  16,050

Accounts Payable                                                                                       100,500

Bonds Payable (20-year, 8%)                                      180,000

Common Shares                                                                                              119,600

Retained Earnings                                                                                             46,112

Sales Revenue                                                                                                 199,000

Rent Revenue                                                                                                   10,800

Advertising Expense                                               23,100

Supplies Expense                                                    10,000

Purchases                                                             98,100

Purchase Discounts                                                                                                750

Salaries and wages expense                                               55,800

Interest Expense                                                          12,650

                                                                           $677,702                                    $677,702

Prepare adjusting and correcting entries for December 31, 2017, using the information given below:

Question 1 The building was purchased and occupied on January 1, 2015, with an estimated useful life of 10 years, and residual value of $30,000. (The company uses straight-line depreciation.)

Question 2 Prepaid insurance contains the premium costs of several policies, including Policy A, cost of $2,646, one-year term, taken out on April 1, 2017; and Policy B, cost of $1,976, three-year term, taken out on September 1, 2017.

Question 3 One of the company's customers declared bankruptcy on December 30, 2017. It is now certain that the $2,750 the customer owes will never be collected. This fact has not been recorded. In addition, Shamrock estimates that 4% of the Accounts Receivable balance on December 31, 2017, will become uncollectible.

Question 4 On November 1, 2015, Shamrock issued 180 $1,000 bonds at par value. Interest is paid semi-annually on April 30 and October 31.