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Adjusting Entries (53-63)

1. The amortization expense for the year is $8000. Decrease the patent asset.

2. Incurred but unpaid income taxes amount to $40,000.

3. The adjustments to bad debt expense she Ill be based on a desired ending balance in the allowance for doubtful accounts account of 10% of the ending A/R balance (hint: there is already a balance in the allowance account)

4. Depreciation on the equipment is based on a useful life of 20 years and $20,000 salvage value.

5. Utilities for the year were $17,500 and will be paid next year.

6. The annual interest rate on the note payable is 9.50%. The note has been outstanding for the entire year (for the amount for the note, see the beginning balance)

7. A count of the remaining office supplies at the end of the year indicates that there is only $2,750 of supplies left. Make the adjustment to account for the used up supplies.

8. Depreciation on the building is based in n a useful life of 40 years and no salvage value.

9. The short term investment purchased on 7/1 for $40,000 at an annual interest rate of 7.50%. Accrue the interest earned. The interest will be revived next year.

10. Salaries incurred and paid is $155,000.

Salaries incurred but unpaid is $15,000

Total salaries for the year is $170,000

11. The insurance at the beginning of the year is prepared for four years. At the end of the current year, one yearss worth has expired. Record the adjustment for the used up insurance amount.

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