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Using the partial Unadjusted Trial Balance at yearend June 30, 2020 below prepare the annual adjusting journal entries in proper general journal form for the below transactions and answer additional questions. Please record all your answers in the journal entry table provided.

Account Title Dr. $ Cr. $ Prepaid Insurance 24,000.00 Notes Receivable 5,500.00 Shop Supplies 2,700.00 Delivery Vehicle 40,000.00 Accumulated Depreciation - Delivery Vehicle 0.00 Unearned Service Revenue 10,000.00 Notes Payable 5,000.00

a) January 1, 2020 a new delivery vehicle was purchased for $40,000. The delivery vehicle has an estimated salvage value of $4,000 and has a estimated useful life of 5 years. Record the depreciation.

b) Accrued revenues at year end totalled $4,200.

c) Employees are paid bi-weekly on Fridays. The total biweekly wage expense for all employees is $10,000. The last pay day was Friday, June 26, 2020 for work to the end of June 26, 2020. Employees do not work weekends. d)The Notes Payable represents a loan received on April 1, 2020. Interest is accrued at 3% per year. Both the interest and principal are payable on March 31, 2020.

e) At year end it was determined that $1,000 of the Shop Supplies had been used. What is the adjusted ending balance in the Shop Supplies account at year end. Please state whether it will be a debit or credit balance.

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