Reference no: EM132531298

A review of the ledger of Robertson Company at December 31, 2019, produces the following data pertaining to the preparation of annual adjusting entries.

Point 1. Salaries and Wages Payable $0: There are eight salaried employees. Salaries are paid every Friday for the current week. Six employees receive a salary of $800 each per week, and two employees earn $600 each per week. Assume December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December.

Point 2. Unearned Rent Revenue $300,000: The company began subleasing office space in its new building on November 1. Each tenant is required to make a $5,000 security deposit that is not refundable until occupancy is terminated. At December 31 the company had the following rental contracts that are paid in full for the entire term of the lease.

date                 term in months          monthly rent             number of leases

nov 1.                       6                          $4,000                     5

dec 1.                        6                          $7,500                       4

Point 3. This company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on January 1, 2019, for $14,400. This policy has a term of 3 years. Policy A2958 on the vehicles was purchased on July 1, 2019, for $11,000. This policy has a term of 2 years.

Point 4. Notes Payable $80,000: This balance consists of a note for 1 year at an annual interest rate of 8%, dated April 1, 2019.

Question 1: Prepare the adjustment entries at December, 31 2019. Show clearly all computations.