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Journalize the required adjusting entries: - On December 31, there are $1,000 of office supplies...

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Accounting

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Journalize the required adjusting entries:

- On December 31, there are $1,000 of office supplies on hand

- On December 31, MWP has delivered $4,500 of the merchandise customers had paid for in advance during the year. This merchandise cost MWP $2,800.

- MWP borrowed the $60,000 on October 1, 2022. MWP must make annual interest payments each September 30 and pay the full note on September 30, 2025. The interest rate on the note is 6%.

- Employees have earned $2,700 in wages for work done since the last payday (December 24)

- The prepaid rent was paid on July 1, 2022, and covers a one-year period starting on July 1, 2022.

- The Building has a twenty-year life and a $10,000 salvage value.

- The Equipment has a five-year useful life and no salvage value.

- December utilities are $290 and will be paid in January

- MWP estimates its bad debts at 5% of its accounts receivable balance.

Trial Balance - December 31

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