Record the following aje’s in the general journal and then post to the appropriate ledger accounts. when posting to the ledger, be sure to cell reference the debit or credit column using the row in between the unadjusted and adjusted balance in each t-account. posting in this row will automatically update your tb worksheet columns labeled "adjustments".

wages earned by employees during the last half of december and to be paid on january 1, were $12,400 and salaries to officers were $15,000. associated payroll taxes on these wages and salaries were $2,810.

of the deferred revenue account, 5% have now been earned.

uncollectible accounts are estimated to be 4% of ending accounts receivable. (round your answer to the nearest whole dollar.)

desert prepays for some insurance and advertising. the prepaid expense account has a balance of $26,774 at year end, but before adjustment. this balance includes $12,240 for an 18-month casualty insurance policy purchased on march 1, 2019. of the remaining prepaid balance, 60% of the advertising has now been used. (round to the nearest whole dollar.)

desert records depreciation & amortization on limited life tangible & intangible assets on a monthly basis using the straight-line method. (*refer to the footnotes for more details on original cost, salvage value and useful lives.)

desert discovers that a cash purchase of new gym equipment on may 1, 2017 for $70,000 was mistakenly recorded as miscellaneous expense. the equipment has a 7 year useful life and 10% salvage value. desert uses the straight-line method to depreciate equipment. record the journal entry to correct the error.

the long-term liabilities were outstanding for all of 2019 and accrue interest at 6% apr. desert records accrued interest on long-term debt quarterly (interest was last updated on sept. 30.) the company is required to pay the interest annually each january 1st. desert also accrued interest on short-term notes payable.

at the end of december, a physical count was taken of desert’s inventories & supplies. it revealed the following information:

inventories – apparel: there were 1,310 units of apparel (t-shirts, tanks and hoodies) on hand at year end with an original cost of $17,420.

office supplies: there was $780 of office supplies on hand as of december 31st

desert received notice that accrued interest on the long-term investment had been sent and the check should arrive in early january, 2020. at december 31, the long-term investment (available for sale securities) had a fair value of $204,700. desert’s tax rate is 30%. (record as two separate ajes)

income tax is based on a 30% tax rate.

*** extra info needed

long-term investments

desert purchased a long-term investment in a corporate bond that was issued at par for $200,000 on july 1, 2019. the bond earns 8% apr and pays interest semi-annually each jun 30 and dec 31. desert classifies this investment as available-for-sale and to comply with gaap, will report this financial instrument at fair value as of the balance sheet date. the company uses a "fair value adjustment" account (an adjunct/contra account) to report any increase/decrease in the asset’s value.

property, plant and equipment

property, plant and equipment are stated on the basis of historical cost. depreciation of buildings and equipment are computed for financial reporting purposes on a straight-line basis, using service lives of 25 years for buildings and 7 years for equipment. salvage value is anticipated to be 10% of original cost for buildings and equipment. desert records depreciation monthly. the book values of these assets as of november 30th are presented below:

land $ 92,564

buildings $605,000

less: accum. depreciation (85,305)

525,087

equipment 841,520

less: accum. depreciation (292,127)

549,393

property, plant & equipment (net) $1,161,652

patent

desert holds one patent for a unique piece of fitness equipment the company developed. the patent was acquired on october 1, 2016. amortization is recorded using the straight-line method, no salvage and a 10-year useful life. desert does not use an accumulated amortization account. the company records amortization monthly.

patent (net of $57,000 accumulated amortization) $123,000

long term liabilities = 618,500