Prepare Year-End Adjustments for the Following Transactions

question 79

Short Answer

Prepare year-end adjustments for the following transactions:
1. The company has a $21,000 note receivable with an interest rate of 7%, interest is due on 1^st of the month. Interest expense is recorded monthly.
2. Customer deposits of $7,500 have been received and not yet earned.
3. Annual rent, totalling $12,000, was paid in advance at the beginning of the year.
4. Services totalling $22,100 had been performed but not yet billed by the end of the year.
5. The company owns equipment worth $105,000. It has a 10 year estimated useful life and no residual value.
6. Supplies on hand at the beginning of the year totalled $880, during the year an additional $350 worth of supplies was purchased. By year end, only $100 in supplies remained.
7. Salaries owed to employees at the end of the year total $1,550.

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Definitions:

Urine Expulsion

The process of discharging urine from the bladder through the urethra to the outside of the body.

Micturition

The process of urinating or emptying the bladder.

Glomerular Filtration Rate

A test used to check how well the kidneys are functioning by estimating how much blood passes through the glomeruli each minute.

Chronic Kidney Disease

Chronic Kidney Disease is a long-term condition where the kidneys lose their ability to filter waste and excess fluids from the blood effectively.