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Question - Using the following unadjusted trial balance as of December 31, 2010 and the additional information provided in each question, prepare the end-of-period adjusting journal entries along with journal entry explanation.
Cash
26,700
Accounts receivable
33,700
Inventory
45,000
Store supplies
5,500
Store equipment
85,000
Delivery equipment
48,000
Accumulated depreciation
24,000
Note payable
51,000
Accounts payable
48,500
Common stock
90,000
Retained earnings
8,000
Sales
753,000
Cost of goods sold
497,400
Salaries expense
140,000
Advertising expense
26,400
Utilities expense
11,000
Store supplies expense
3,000
Repair expense
12,100
Delivery expense
16,700
Rent expense
Totals
974,500
On October 1, 2010, the company signed a new three-year lease and paid $9,000 for the next nine months of rent.
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