Reference no: EM132953566

The Schauer Company had the following adjustments at December 31, 2019, the end of the accounting period:

A. The Schauer Company uses straight-line depreciation for its equipment. The cost of the equipment is $105,000 and the useful life is 5 years. The equipment was purchased on January 1, 2019 and has no residual value.

B. Accrued interest of $10,000 on a note receivable will be received in January.

C. On November 1, 2019, the Schauer Company paid $3,000 for six months of rent in advance. The rental period is November 1, 2019 through April 30, 2020.

D. On August 1, 2019, the company collected $24,000 in advance for a consulting contract, which is to be earned evenly over the next 24 months.

E. Employees are owed salaries for 3 days of a 5-day workweek; weekly payroll is $30,000.

F. The unadjusted balance of the supplies account is $2,750. Based on a physical count, the cost of supplies on hand is $1,000.

G. The company has incurred interest expense of $1,000 that will be paid in January.

Required:

Problem 1. Journalize the adjusting entries.

Problem 2. Complete the Adjusted Trial Balance Worksheet (including the heading) by a. Posting and referencing the adjusting entries b. Determine the Ending Adjusted Trial Balances