The Records of McGarrett Corp.show the Following Information

question 68

Essay

The records of McGarrett Corp.show the following information:
(a)Purchased Machine B used in the factory for $450,000 on July 1,2010.Machine B has an estimated useful life of 12 years and a residual value of $30,000.McGarrett uses straight-line depreciation.
(b)Sales for 2013 amounted to $4,000,000,including $600,000 of sales on credit.Bad debt losses are estimated based on actual experience to be .25% of credit sales.
(c)The dollar value of office supplies inventory at the beginning of 2013 equaled $600.During 2013,office supplies costing $8,800 were purchased.This amount was debited to office supplies expense.The dollar value of the ending inventory was determined to be $400.The January 1 balance of $600 still appears as the balance in the office supplies inventory account.
(d)On July 1,2013,the company paid a three-year insurance premium in the amount of $2,160.This amount was debited to insurance expense.
(e)On October 1,2013,the company paid rent on some leased office space.The payment of $7,200 cash was for the following six months.The $7,200 payment was debited to rent expense
Prepare journal entries to adjust the books of McGarrett Corp.at December 31,2013.

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Definitions:

Hardy Personality

A personality trait characterized by resilience and the capability to thrive in the face of stress and adversity, linked to positive coping mechanisms and attitudes.

Type A Personality

A temperament characterized by high levels of ambition, aggression, competitiveness, drive, impatience, need for control, focus on time management, and stress.

External Locus

An individual's belief that external forces, beyond their personal control, have a significant impact on their life events and outcomes.

Experience Stress

The emotional or physical strain experienced as a response to challenging or demanding situations.