1)The warehouse employees counted the ending inventory on hand atDecember 31, 2003. Their ending inventory balance is $40,000.(Remember we are using the periodic inventory method.)2) Thesupplies department counted the supplies on hand. The balance ofsupplies at December 31 is $500. 3) The note payable is due in 5years and was initiated on April 1, 2003. The note payable requiresannual interest payments of 11% payable on March 31 of each year.Round to the nearest dollar. (Note: I used 275 days out of 365 toprorate the interest expense on the note payable)4) The company hasestimated that bad debt expense is equal to one half of a percent(.005) of net sales (sales less sales discounts and returns).5)December salaries and wages will be paid on January 5, 2004.December salaries and wages are $6,000. 6) Two of the fixed assetshave not been completely depreciated. These two items are amainframe computer purchased for $20,000 in 2002 and a personalcomputer purchased in the current year on October 1, 2003 for$3,000. Computers are depreciated using the straight-line methodover 3 years. The salvage value is 0.7) The company’s income taxrate is 15%. Round to the nearest dollar. (For taxes most companiescomplete the other adjusting entries and then post them to the GL.Then prepare a preliminary income statement and calculate thetaxes. Then they can make the adjusting entry for taxes and post tothe general ledger).Instructions:1) Prepare the adjusting entriesfor December 31, 2003. These entries should be recorded in thegeneral journal. Provide any necessary calculations to support yourentries. Note: Don’t forget to put the income tax adjusting journalentry in the general journal and post it to the general ledger.Unadjusted trial balance

Excel File Edit Data Window Help D Mon 12:12 AM Q View Insert Format Tools SUED - AutoSave OFF & Report Fomats.xls - Compatibility Mode Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Insert X LLY v 10 VA A Wraa Text Custom Σν 27.0 Paste B 1 AY + Y Ideas x Delete 1 Format v Merge & Center Conditional Format Cell Formatting a Table Styles Sensitivity y Sort Filter Find & Select G26 A R C F F G H H 1 1 j K к N P R S т T V W X 1 2 3 One Time Ilits Unadjusted Trial Balance December 31, 2003 4 7 nebus 30.750.00 13,850,00 8 10 2.000.00 12 50,000.00 1,000.00 40.000.00 20,000.00 5,925.00 16 16 17 18 Account Description 10100 Cash 10200 Accounts Receivable 10300 Allwance For Doublul Accounts 101400 Inventory 10500 Supplies 15100 Fixed Asses 15200 Accimolared lepreciation 20100 Accounts Payable 20200 Salaries and Wages Payable 30300 Interest Payrole 20100 Income Taxes Payable 25100 Notes Payable 30000 Cornou Stoc's 10002 Retuined Tarnings 2100 Sales 20300 Salus Discount 49000 Purchases 50100 Salaries and Wages 50200 Ollice Supplies 50300 Pranvation and Advertising 50400 Other Administrative Exp 50500 Deprecaution Cixpenses Interest Expenses 5060) Costur Goods Sold 50602 Bad Deht Expense 50700 Income Taxca Expause 20 21 29 23 14,000.00 3,000.00 2.000,00 617,800,00 24 25 20 7,000.00 405.625.00 100,000.00 10,300,00 5,200.00 1.000.00 27 28 29 30 31 32 33 34 95 36 97 Total 64,725.00 Unadjusted Trial Balance AR Aging Adjusted Trial Balance IS and RE BS + Ready - 100% 34.18 1 etv A 09 X W