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Problem 1. Adjusting Entries (18 marks in toal. 3 marks for each adjusting entry) The following trial balance was taken from the books of Fisk Corporation on December 31, 2010. Account Debit Credit Cash $.12.000 40,000 7,000 $ 180 44,000 4,800 Accounts Receivable Note Receivable Allowance for Doubtful Accounts Merchandise Inventory Prepaid Insurance Furniture and Equipment Accumulated Depreciation--Furniture & Equipment. Accounts Payable Common Stock Retained Earnings 125,000 15.000 10,800 44,000 55,000 Sales 280,000 111,000 Cost of Goods Sold Salaries Expense 50,000 Rent Expense 12,800 Totals $406.600 $406.600 At year end, the several items have not yet been recorded a. Prepare adjusting entry to accrue sales revenue at December 31, $5,000. b. Prepare adjusting entry to record estimated bad debts, 5% of gross receivable (gross receivable means Accounts Receivable + Notes Receivable). C. Prepare adjusting entry to record depreciation on furniture and equipment, 10% of original purchase cost per year. d. Prepare adjusting entry to record interest at 6% on the note receivable for one full year. e. Prepare adjusting entry to record insurance paid in advance for one year at October 31, $4,800 1. Prepare adjusting entry to accrued salaries at December 31, 85,800

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