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Your examination of Sullivan companys records provides the following information for the December 31 ,...

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Accounting

Your examination of Sullivan companys records provides the following information for the December 31 , year end adjustments image
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Instructions Your examination of Sulivan Company's records provides the following information for the December 31, year-end adjustments 1 Bad debts are to be recorded at 2% of sales. Sales made on credit totaled $20,000 for the year. 2. Salaries at year-end that have accumulated but have not been paid total $1.400 3. Annu al straight-line depreciation for the company's equipment is based on a cost of $29,000, an estimated life of 8 years, and an estimated residual value of $1,000 4. Prepaid insurance in the amount of $800 has expired 5. Interest that has been earned but not collected totals $500 6. The company has satisfied performance obligations entiting it to rent in the amount of $1,000 7, Interest on a note payable that has accumulated but has not been paid totals s600. 8. The income tax rate is 30% on current income and is payable in the first quarter of the next year. The pretax income before the preceding adjusting entries is $6,800

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