Using Thornes unadjusted trial balance below and facts a-h, complete necessary adjusting entries at fiscal year end.

Thorne Construction Unadjusted trial balance For the year ended July 31, 20X8
	Debit	Credit
Cash	12,500
Accounts Receivable	40,000
Allowance for Doubtful Accounts		2,000
Office Supplies	1,850
Prepaid insurance	6,500
Prepaid Rent
Equipment	154,000
Accum. Depreciation - Equipment		38,500
Accounts Payable		23,000
Interest Payable
Wages Payable
Long-term Notes Payable		30,000
W. Thorne, Capital		82,300
W. Thorne, Drawing	25,000
Constuction Revenues		112,000
Bad Debt Expense
Depreciation ExpenseEquipment
Wage Expense	29,400
Interest Expense	900
Insurance Expense
Rent Expense	10,800
Office Supplies Expense
Repairs Expense	100
Utilities Expense	6,750
Totals	287,800	287,800

a. A physical count of office supplies as of July 31, 20X8,,shows $800 in supplies on hand.

b. On March 1, 20X7, Thorne Construction prepaid $9,000 for an 18-month insurance policy of which 5 months ($2,500) was used up during fiscal year 20X7.

c. The equipment has a 28-year life and no salvage value. Thorne uses straight-line depreciation.

d. Julys electric bill for $420 is not included because it arrived after the worksheet was prepared.

e. There are $1,800 of accrued wages as of the fiscal year end.

f. Thornes rent of $800 a month is payable quarterly, in advance. Its most recent payment was $2,400O on June 30,^, 20X8, to cover July, August and September 20X8.

g. Thorne estimates bad debt at 2% of credit sales.

h. The long-term note payable bears interest at 1% a month payable by the 10^th of the following month. The interest for July has neither been paid nor recorded.