Reference no: EM132727948
Selected amounts from Sandhill Company's trial balance of 12/31/20 appear below:
1.Accounts Payable$125,900
2.Accounts Receivable 146,200
3.Accumulated Depreciation-Equipment 199,400
4.Allowance for Doubtful Accounts 15,100
5.Bonds Payable 493,900
6.Cash 144,600
7.Common Stock 66,000
8.Equipment 871,500
9.Prepaid Insurance31,800
10.Interest Expense 10,400
11.Inventory 318,700
12.Notes Payable (due 6/1/21) 208,500
13.Prepaid Rent 246,000
14.Retained Earnings 815,200
15.Salaries and Wages Expense 339,700
(All of the above accounts have their standard or normal debit or credit balance.)
Problem 1: Prepare an adjusting journal entries at year end, December 31, 2020, based on the following supplemental information. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
a. The equipment has a useful life of 15 years with no salvage value. (Straight-line method being used.)
b. Interest accrued on the bonds payable is $14,817 as of 12/31/20
c. Prepaid insurance at 12/31/20 is $21,200
d. The rent payment of $246,000 covered the six months from November 30, 2020 through May 31, 2021
e. Salaries and wages earned but unpaid at 12/31/20, $20,400.