Reference no: EM132983652

Jackson, Inc. has prepared a year-end 2021 trial balance. Certain accounts in the trial balance do not reflect all activities that have occurred.

1. The Supplies account shows a balance of $3,580, but a count of supplies reveals only $1,540 on hand.
2. Jackson initially records the payments of all insurance premiums as expenses. The trial  balance shows a balance of $7,200 in Insurance Expense. A review of insurance policies  reveals that $2,400 of insurance is unexpired.
3. Jackson's employees work Monday through Friday, and salaries of $3,000 per week are paid each Friday. Jackson's year-end falls on Tuesday.
4. On December 31, 2021, Jackson received a utility bill for December electricity usage of $860 that will be paid in early January of 2022.
5. Interest has accrued on a $60,000, 5% note payable, issued on May 1.
6. Jackson owns bonds of another corporation as an investment that pay annual interest of  $900. These bonds were purchased on April 1, 2021, and the next interest payment will be received on April 1, 2022.

Required:

Problem 1: Prepare annual adjusting entries based on the information above.