Could anyone explain how to put these adjusted balances into a journal entry?
1. Accrued interest earned but not yet collected on the investments account (account #150) balance has been calculated to be $4,000.
2. Accrued interest on the note receivable that originated on December 1 (to Woodson Corp.) needs to be calculated and recorded. Lent $50,000 in cash to one of its suppliers (Check #501 payable to Woodson Corp). The supplier signed a 1-year, 12% promissory note with a face value of $50,000. The note’s face value plus interest is due on 12/1/X6.
3. Wolfpack uses the percentage of accounts receivable method to estimate bad debts. Wolfpack estimates that 3% of its ending gross receivable balance is uncollectible. The amount is $1240.
4. A physical count shows the ending inventory balance at 12/31/X5 should be $100,000.
5. An end of year analysis of its insurance policies shows that the balance still prepaid on December 31, 20X5 should be $2,000.
6. An end of year analysis of its rental agreements (as a lessee) shows that the balance still prepaid on December 31, 20X5 should be $4,000.
7. Depreciation expense on the buildings is $35,000 for the year.
8. Depreciation expense on the equipment is $20,000 for the year.
9. Amortization on the patent is $25,000 for the year.
10. Supplies on hand total $3,000.
11. Accrued interest on all notes payable for the month of December has been calculated to be $4,650. This interest will be paid in 20X6.
12. Wolfpack accrues a $5,000 bonus to its manager for benchmarks the company met during 20X5. The bonus will be paid in January of 20X6.
13. Wolfpack makes the necessary year- end adjustment to recognize rent revenue by receiving $9,000 cash for a three-month rental of equipment.
14. Management estimates the “Estimated Sales Return Liability” credit balance at the end of December should be $4,000.